Earnings Update: HIAG Immobilien Holding AG (VTX:HIAG) Just Reported Its Interim Results And Analysts Are Updating Their Forecasts

It's been a good week for HIAG Immobilien Holding AG (VTX:HIAG) shareholders, because the company has just released its latest interim results, and the shares gained 3.1% to CHF78.80. Revenues came in 3.5% below expectations, at CHF82m. Statutory earnings per share were relatively better off, with a per-share profit of CHF3.58 being roughly in line with analyst estimates. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for HIAG Immobilien Holding

After the latest results, the two analysts covering HIAG Immobilien Holding are now predicting revenues of CHF143.4m in 2024. If met, this would reflect an okay 4.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to plummet 26% to CHF4.49 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of CHF143.4m and earnings per share (EPS) of CHF5.81 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.

It might be a surprise to learn that the consensus price target was broadly unchanged at CHF101, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that HIAG Immobilien Holding's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 9.5% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 5.5% per year. So it's clear that despite the slowdown in growth, HIAG Immobilien Holding is still expected to grow meaningfully 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 HIAG Immobilien Holding. On the plus side, they made no changes to their revenue estimates - and they expect it to perform better than the wider industry. The consensus price target held steady at CHF101, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on HIAG Immobilien Holding. Long-term earnings power is much more important than next year's profits. We have analyst estimates for HIAG Immobilien Holding going out as far as 2026, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for HIAG Immobilien Holding (1 doesn't sit too well with us!) that you need to take into consideration.

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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.