Orion Oyj stock jumps following Q1 earnings beat

Published 23/04/2025, 12:02
Orion Oyj stock jumps following Q1 earnings beat

Investing.com -- Shares of Orion Oyj (HEL:ORNBV) climbed 4.2% as the company reported first-quarter earnings that surpassed analysts’ expectations. The Finnish pharmaceutical company’s net sales reached €354.6 million, exceeding the consensus estimate of €342.9 million by 3%, with significant contributions from its prostate cancer drug Nubeqa, which accounted for €91.5 million of the total sales.

The company’s earnings before interest and taxes (EBIT) for the first quarter were also higher than anticipated, coming in at €77.9 million against the consensus of €71.5 million, marking a 9% beat. Net profit similarly outperformed, with €61.3 million reported versus the €56.7 million expected by analysts, an 8% increase.

Despite the positive performance in the first quarter, Orion Oyj reiterated its full-year 2025 net sales and EBIT outlook, with net sales projected to be between €1,550 million and €1,650 million. The mid-point of this range, €1,600 million, is approximately 2% below the consensus of €1,636 million, hinting at the potential for an upward revision in second-quarter guidance.

The EBIT forecast for the year is set at €350 million to €450 million, with the mid-point at €400 million, around 10% lower than the consensus of €440 million, again indicating a possibility for future guidance upgrades.

Orion Oyj has also reaffirmed its targets for the 2024-28 period, aiming for a compound annual growth rate (CAGR) in net sales of at least 8%. Analysts have projected a slightly higher CAGR of 9% based on the assumption of a sales figure of €1,472 million for 2024, excluding a €70 million Nubeqa milestone, and €2,074 million for 2028.

The company expects an EBIT growth that outpaces sales, with Visible Alpha consensus forecasting a 20% CAGR from €287 million in 2024 to €603 million in 2028, considering milestones and provisions. Furthermore, Orion plans to increase its dividend per share annually, maintaining a payout ratio of 50% to 100%.

In response to the earnings report, analysts at Jefferies commented on the company’s prospects, stating, "We remain optimistic on Nubeqa’s ability to outperform and set into motion a series of outlook upgrades over the quarters."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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