Yahoo Finance Hexatronic Group AB (publ) Just Reported, And Analysts Assigned A kr72.00 Price Target
Hexatronic Group AB (publ) (STO:HTRO) shares fell 3.2% to kr54.20 in the week since its latest annual results. Results were roughly in line with estimates, with revenues of kr1.8b and statutory earnings per share of kr1.80. Following the result, analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether analysts have changed their earnings models, following these results.
See our latest analysis for Hexatronic Group
After the latest results, the twin analysts covering Hexatronic Group are now predicting revenues of kr2.22b in 2020. If met, this would reflect a substantial 21% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to shoot up 64% to kr2.96. In the lead-up to this report, analysts had been modelling revenues of kr2.24b and earnings per share (EPS) of kr2.99 in 2020. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
With no major changes to earnings forecasts, the consensus price target fell 5.9% to kr72.00, suggesting that analysts might have previously been hoping for an earnings upgrade.
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. Next year brings more of the same, according to analysts, with revenue forecast to grow 21%, in line with its 24% annual growth over the past five years. Compare this with the wider market (in aggregate), which analyst estimates suggest will see revenues fall 33% next year. So although Hexatronic Group is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider market.
The Bottom Line
The most obvious conclusion from these results is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Hexatronic Group's revenues are expected to perform worse than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by the latest results, leading to a lower estimate of Hexatronic Group's future valuation.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Hexatronic Group going out as far as 2022, and you can see them free on our platform here.
You can also see whether Hexatronic Group is carrying too much debt, and whether its balance sheet is healthy, for free on our platform 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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