HUB24 Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's been a good week for HUB24 Limited (ASX:HUB) shareholders, because the company has just released its latest yearly results, and the shares gained 10.0% to AU$54.31. It looks like the results were a bit of a negative overall. While revenues of AU$328m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 7.6% to hit AU$0.56 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on HUB24 after the latest results.

See our latest analysis for HUB24

Taking into account the latest results, the current consensus from HUB24's 17 analysts is for revenues of AU$390.8m in 2025. This would reflect a meaningful 19% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 47% to AU$0.86. Yet prior to the latest earnings, the analysts had been anticipated revenues of AU$392.3m and earnings per share (EPS) of AU$0.90 in 2025. 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.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 7.9% to AU$46.72, suggesting the revised estimates are not indicative of a weaker long-term future for the business. 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. There are some variant perceptions on HUB24, with the most bullish analyst valuing it at AU$59.00 and the most bearish at AU$27.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that HUB24's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 19% growth on an annualised basis. This is compared to a historical growth rate of 30% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.9% per year. So it's pretty clear that, while HUB24's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for HUB24 going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, 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.