Hacksaw AB (publ) Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Investors in Hacksaw AB (publ) (STO:HACK) had a good week, as its shares rose 3.4% to close at kr56.30 following the release of its third-quarter results. The result was positive overall - although revenues of €58m were in line with what the analysts predicted, Hacksaw surprised by delivering a statutory profit of €0.16 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus from Hacksaw's four analysts is for revenues of €320.4m in 2027. This would reflect a huge 39% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 22% to €0.76. Yet prior to the latest earnings, the analysts had been anticipated revenues of €320.4m and earnings per share (EPS) of €0.80 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

View our latest analysis for Hacksaw

It might be a surprise to learn that the consensus price target was broadly unchanged at kr101, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Hacksaw at kr129 per share, while the most bearish prices it at kr89.66. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Hacksaw'shistorical trends, as the 30% annualised revenue growth to the end of 2027 is roughly in line with the 34% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.3% annually. So although Hacksaw is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Hacksaw. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at kr101, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Hacksaw. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Hacksaw analysts - going out to 2028, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Hacksaw that you should be aware of.

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