HKR International Limited Just Missed Earnings; Here's What Analysts Are Forecasting Now
Shareholders might have noticed that HKR International Limited (HKG:480) filed its full-year result this time last week. The early response was not positive, with shares down 2.8% to HK$1.04 in the past week. Things were not great overall, with a surprise (statutory) loss of HK$0.18 per share on revenues of HK$2.9b, even though the analyst had been expecting a profit. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on HKR International after the latest results.
Taking into account the latest results, the current consensus, from the sole analyst covering HKR International, is for revenues of HK$2.64b in 2027. This implies a definite 10% reduction in HKR International's revenue over the past 12 months. Earnings are expected to improve, with HKR International forecast to report a statutory profit of HK$0.03 per share. Yet prior to the latest earnings, the analyst had been anticipated revenues of HK$2.84b and earnings per share (EPS) of HK$0.051 in 2027. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.
Check out our latest analysis for HKR International
What's most unexpected is that the consensus price target rose 21% to HK$1.63, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would also point out that the forecast 10% annualised revenue decline to the end of 2027 is roughly in line with the historical trend, which saw revenues shrink 8.9% annually over the past five years Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 2.4% annually. So it's pretty clear that, while it does have declining revenues, the analyst also expect HKR International to suffer worse than the wider industry.
The Bottom Line
The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.
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 HKR International going out as far as 2028, and you can see them free on our platform here.
Even so, be aware that HKR International is showing 1 warning sign in our investment analysis , you should know about...
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.