Yahoo Finance Here's What Analysts Are Forecasting For Nokian Renkaat Oyj After Its Full-Year Results
Nokian Renkaat Oyj (HEL:TYRES) came out with its yearly results last week, and we wanted to see how the business is performing and what top analysts think of the company following this report. Results were roughly in line with estimates, with revenues of €1.6b and statutory earnings per share of €2.89. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see analysts' latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Nokian Renkaat Oyj
Taking into account the latest results, the current consensus, from the 14 analysts covering Nokian Renkaat Oyj, is for revenues of €1.55b in 2020, which would reflect a noticeable 2.7% reduction in Nokian Renkaat Oyj's sales over the past 12 months. Statutory earnings per share are forecast to dive 48% to €1.52 in the same period. In the lead-up to this report, analysts had been modelling revenues of €1.55b and earnings per share (EPS) of €1.68 in 2020. Analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share forecasts for next year.
The consensus price target held steady at €24.19, with analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Nokian Renkaat Oyj analyst has a price target of €33.00 per share, while the most pessimistic values it at €19.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Zooming out to look at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up both against past performance, and against industry growth estimates. These estimates imply that sales are expected to slow, with a forecast revenue decline of 2.7% a significant reduction from annual growth of 4.6% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same market are forecast to see their revenue grow 3.4% annually for the foreseeable future. It's pretty clear that Nokian Renkaat Oyj's revenues are expected to perform substantially worse than the wider market.
The Bottom Line
The most important thing to take away is that analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Nokian Renkaat Oyj's revenues are expected to perform worse than the wider market. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Nokian Renkaat Oyj analysts - going out to 2023, and you can see them free on our platform here.
We also provide an overview of the Nokian Renkaat Oyj Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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