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Himalaya Shipping Ltd. (OB:HSHP) Third-Quarter Results: Here's What Analysts Are Forecasting For Next Year
Himalaya Shipping Ltd. (OB:HSHP) investors will be delighted, with the company turning in some strong numbers with its latest results. Results were good overall, with revenues beating analyst predictions by 3.0% to hit US$63m. Statutory earnings per share (EPS) came in at US$0.71, some 2.2% above whatthe analysts had expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Following the recent earnings report, the consensus from five analysts covering Himalaya Shipping is for revenues of US$187.5m in 2027. This implies a measurable 2.3% decline in revenue compared to the last 12 months. Statutory per share are forecast to be US$1.65, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$187.6m and earnings per share (EPS) of US$1.65 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.
View our latest analysis for Himalaya Shipping
There were no changes to revenue or earnings estimates or the price target of kr159, 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. Currently, the most bullish analyst values Himalaya Shipping at kr171 per share, while the most bearish prices it at kr136. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. 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.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Himalaya Shipping's past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.8% by the end of 2027. This indicates a significant reduction from annual growth of 53% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.3% annually for the foreseeable future. It's pretty clear that Himalaya Shipping's revenues are expected to perform substantially worse than the wider 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Himalaya Shipping's revenue is expected to perform worse 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. At Simply Wall St, we have a full range of analyst estimates for Himalaya Shipping going out to 2028, and you can see them free on our platform here..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Himalaya Shipping (at least 2 which are significant) , and understanding them should be part of your investment process.
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