Teleste Oyj Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected
As you might know, Teleste Oyj (HEL:TLT1V) last week released its latest third-quarter, and things did not turn out so great for shareholders. Earnings missed expectations fairly severely, with revenues arriving 21% shy of expectations at just €28m. Per-share statutory earnings were €0.07, missing analyst predictions by 12%. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.
After the latest results, the single analyst covering Teleste Oyj are now predicting revenues of €151.0m in 2027. If met, this would reflect a decent 15% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 59% to €0.38. Yet prior to the latest earnings, the analyst had been anticipated revenues of €156.0m and earnings per share (EPS) of €0.41 in 2027. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.
See our latest analysis for Teleste Oyj
Despite the cuts to forecast earnings, there was no real change to the €3.90 price target, showing that the analyst doesn't think the changes have a meaningful impact on its intrinsic value.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that Teleste Oyj is forecast to grow faster in the future than it has in the past, with revenues expected to display 12% annualised growth until the end of 2027. If achieved, this would be a much better result than the 3.5% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 5.2% annually. So it looks like Teleste Oyj is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Teleste Oyj. They also downgraded Teleste Oyj's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at €3.90, with the latest estimates not enough to have an impact on their price target.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.
We don't want to rain on the parade too much, but we did also find 3 warning signs for Teleste Oyj (1 can't be ignored!) that you need to be mindful of.
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