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HEXPOL AB (publ) Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
Last week, you might have seen that HEXPOL AB (publ) (STO:HPOL B) released its third-quarter result to the market. The early response was not positive, with shares down 4.7% to kr93.50 in the past week. It was not a great result overall. Although revenues beat expectations, hitting kr5.3b, statutory earnings missed analyst forecasts by 15%, coming in at just kr1.30 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following the latest results, HEXPOL's seven analysts are now forecasting revenues of kr21.9b in 2027. This would be a notable 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 30% to kr6.84. In the lead-up to this report, the analysts had been modelling revenues of kr21.6b and earnings per share (EPS) of kr6.85 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
Check out our latest analysis for HEXPOL
There were no changes to revenue or earnings estimates or the price target of kr102, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on HEXPOL, with the most bullish analyst valuing it at kr115 and the most bearish at kr74.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
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 HEXPOL's rate of growth is expected to accelerate meaningfully, with the forecast 9.3% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 1.1% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that HEXPOL is expected to grow much faster than its industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple HEXPOL analysts - going out to 2028, and you can see them free on our platform here.
It might also be worth considering whether HEXPOL's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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