There’s been a major selloff in Rush Factory Oyj (HEL:RUSH) shares in the week since it released its yearly report, with the stock down 35% to €1.13. It was an okay result overall, with revenues coming in at €4.1m, roughly what analysts had been expecting. 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. So we gathered the latest post-earnings forecasts to see what analysts’ statutory forecasts suggest is in store for next year.
Check out our latest analysis for Rush Factory Oyj
HLSE:RUSH Past and Future Earnings, March 17th 2020
After the latest results, the consensus from Rush Factory Oyj’s lone analyst is for revenues of €3.90m in 2020, which would reflect a measurable 3.7% decline in sales compared to the last year of performance. Earnings are expected to improve, with Rush Factory Oyj forecast to report a statutory profit of €0.11 per share. In the lead-up to this report, analysts had been modelling revenues of €5.50m and earnings per share (EPS) of €0.32 in 2020. It looks like analyst sentiment has declined substantially in the aftermath of these results, with a pretty serious reduction to revenue estimates and a large cut to consensus earnings per share numbers as well.
It’ll come as no surprise then, to learn that analysts have cut their price target 48% to €1.20.
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. Over the past three years, revenues have declined around 4.4% annually. On the bright side, analysts expect the decline to level off somewhat, with the forecast for a 3.7% decline in revenue next year. Compare this against analyst estimates for companies in the wider market, which suggest that revenues (in aggregate) are expected to decline 8.8% next year. So while it’s not great to see that analysts are expecting a decline, at least Rush Factory Oyj is forecast to shrink at a slower rate than the wider market.
The Bottom Line
The biggest concern with the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Rush Factory Oyj. Unfortunately, analysts also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider market. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with analysts seemingly not reassured by the latest results, leading to a lower estimate of Rush Factory Oyj’s future valuation.
Still, the long-term prospects of the business are much more relevant than next year’s earnings. We have analyst estimates for Rush Factory Oyj going out as far as 2023, and you can see them free on our platform here.
You can also see our analysis of Rush Factory Oyj’s Board and CEO remuneration and experience, and whether company insiders have been buying stock.
If you spot an error that warrants correction, please contact the editor at [email protected]. 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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