Hypera S.A. (BVMF:HYPE3) Just Reported Annual Earnings: Have Analysts Changed Their Mind On The Stock?

Investors in Hypera S.A. (BVMF:HYPE3) had a good week, as its shares rose 3.3% to close at R$34.10 following the release of its full-year results. It looks like the results were a bit of a negative overall. While revenues of R$7.9b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.2% to hit R$2.61 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Hypera after the latest results.

Check out our latest analysis for Hypera

Taking into account the latest results, the consensus forecast from Hypera's ten analysts is for revenues of R$8.74b in 2024. This reflects a notable 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 14% to R$2.98. In the lead-up to this report, the analysts had been modelling revenues of R$8.83b and earnings per share (EPS) of R$3.02 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at R$42.78. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Hypera at R$56.00 per share, while the most bearish prices it at R$36.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Hypera shareholders.

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 Hypera's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 10% growth on an annualised basis. This is compared to a historical growth rate of 22% over the past five years. Compare this to the 6 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 8.8% per year. So it's pretty clear that, while Hypera's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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. We have estimates - from multiple Hypera analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that Hypera is showing 2 warning signs in our investment analysis , and 1 of those is significant...

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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.