EN
Hypera S.A. Just Beat EPS By 5.9%: Here's What Analysts Think Will Happen Next
It's been a mediocre week for Hypera S.A. (BVMF:HYPE3) shareholders, with the stock dropping 19% to R$21.52 in the week since its latest third-quarter results. The result was positive overall - although revenues of R$2.4b were in line with what the analysts predicted, Hypera surprised by delivering a statutory profit of R$0.75 per share, modestly greater than expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
After the latest results, the 14 analysts covering Hypera are now predicting revenues of R$10.3b in 2027. If met, this would reflect a decent 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 19% to R$3.08. In the lead-up to this report, the analysts had been modelling revenues of R$10.3b and earnings per share (EPS) of R$3.11 in 2027. 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.
Check out our latest analysis for Hypera
The analysts reconfirmed their price target of R$30.62, showing that the business is executing well and in line with expectations. 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. The most optimistic Hypera analyst has a price target of R$36.00 per share, while the most pessimistic values it at R$25.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Hypera's growth to accelerate, with the forecast 11% annualised growth to the end of 2027 ranking favourably alongside historical growth of 5.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.6% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Hypera is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Hypera. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Hypera analysts - going out to 2028, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Hypera that you should be aware of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.