Analysts Are Updating Their HUB24 Limited (ASX:HUB) Estimates After Its Half-Yearly Results

Last week saw the newest interim earnings release from HUB24 Limited (ASX:HUB), an important milestone in the company's journey to build a stronger business. HUB24 reported in line with analyst predictions, delivering revenues of AU$157m and statutory earnings per share of AU$0.46, suggesting the business is executing well and in line with its plan. 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.

Check out our latest analysis for HUB24

Taking into account the latest results, the consensus forecast from HUB24's 13 analysts is for revenues of AU$329.3m in 2024. This reflects a meaningful 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 15% to AU$0.63. In the lead-up to this report, the analysts had been modelling revenues of AU$329.8m and earnings per share (EPS) of AU$0.68 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

The consensus price target held steady at AU$37.53, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 HUB24 at AU$44.00 per share, while the most bearish prices it at AU$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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of HUB24'shistorical trends, as the 24% annualised revenue growth to the end of 2024 is roughly in line with the 28% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.6% annually. So although HUB24 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 HUB24. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for HUB24 going out to 2026, and you can see them free on our platform here..

We also provide an overview of the HUB24 Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.