Analysts Have Made A Financial Statement On H+H International A/S' (CPH:HH) Annual Report

It's been a pretty great week for H+H International A/S (CPH:HH) shareholders, with its shares surging 12% to kr.154 in the week since its latest yearly results. The result was positive overall - although revenues of kr.2.7b were in line with what the analysts predicted, H+H International surprised by delivering a statutory profit of kr.13.50 per share, modestly greater than expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for H+H International

Following the latest results, H+H International's dual analysts are now forecasting revenues of kr.2.80b in 2021. This would be a satisfactory 5.3% improvement in sales compared to the last 12 months. Per-share earnings are expected to grow 12% to kr.15.11. Before this earnings report, the analysts had been forecasting revenues of kr.2.89b and earnings per share (EPS) of kr.16.02 in 2021. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

The analysts made no major changes to their price target of kr.190, suggesting the downgrades are not expected to have a long-term impact on H+H International's 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 H+H International's revenue growth will slow down substantially, with revenues to the end of 2021 expected to display 5.3% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. Compare this to the 44 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.8% per year. So it's pretty clear that, while H+H International'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 the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at kr.190, 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 H+H International. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2023, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for H+H International that you should be aware of.

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