Yesterday’s slump was harsh, and it continued a bit today as well. Personally, I saw the same thing Petri did: operating profit was merely shifted into Q4. Just like it shifted from Q2 → Q3. We are basically at the same levels now as Petri’s forecasts were before Q2 regarding operating profit.
OP also reiterated their Buy recommendation and trimmed the target price to €12.
Temporary softness offers an even better buying opportunity An important Q3 for Sanoma was subdued as Learning faced some timing-related headwinds. Media Finland’s performance has headed in a better direction, and this is expected to continue next year, supported by the opening of the gambling market. Our forecast changes remain minor at the group level, and in our view, the sharp share price drop on earnings day is explained more by headwinds in Learning, which is crucial to the narrative, than by changes in fundamentals. We reiterate our BUY recommendation and update our target price to EUR 12.00 (prev. 12.50).
I wonder what bothered the market so much about that report?
Next year’s outlook is good nonetheless, with elections as well as gambling advertising supporting Media’s earnings. The outlook on the Learning side seems pretty good too, doesn’t it?