Last week saw the newest quarterly earnings release from Remedy Entertainment Oyj (HEL:REMEDY), an important milestone in the company’s journey to build a stronger business. Things were not great overall, with a surprise (statutory) loss of €0.04 per share on revenues of €17m, even though the analysts had been expecting a profit. Earnings are an important time for investors, as they can track a company’s performance, look at what the analysts are forecasting for next year, and see if there’s been a change in sentiment towards the company. With this in mind, we’ve gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for Remedy Entertainment Oyj from three analysts is for revenues of €65.1m in 2025. If met, it would imply a solid 8.8% increase on its revenue over the past 12 months. Statutory earnings per share are expected to drop 15% to €0.04 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €66.7m and earnings per share (EPS) of €0.37 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.
Check out our latest analysis for Remedy Entertainment Oyj
It’ll come as no surprise then, to learn that the analysts have cut their price target 13% to €17.00. There’s another way to think about price targets though, and that’s to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Remedy Entertainment Oyj, with the most bullish analyst valuing it at €19.00 and the most bearish at €14.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Remedy Entertainment Oyj is an easy business to forecast or the the analysts are all using similar assumptions.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It’s clear from the latest estimates that Remedy Entertainment Oyj’s rate of growth is expected to accelerate meaningfully, with the forecast 18% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 2.0% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.3% annually. Factoring in the forecast acceleration in revenue, it’s pretty clear that Remedy Entertainment Oyj is expected to grow much faster than its industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Remedy Entertainment Oyj. They also downgraded Remedy Entertainment Oyj’s revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that in mind, we wouldn’t be too quick to come to a conclusion on Remedy Entertainment Oyj. Long-term earnings power is much more important than next year’s profits. We have estimates – from multiple Remedy Entertainment Oyj analysts – going out to 2027, and you can see them free on our platform here.
Before you take the next step you should know about the 1 warning sign for Remedy Entertainment Oyj that we have uncovered.
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