Helios Towers plc (LON:HTWS) Just Reported Full-Year Earnings: Have Analysts Changed Their Mind On The Stock?

As you might know, Helios Towers plc (LON:HTWS) recently reported its full-year numbers. It was a pretty bad result overall; while revenues were in line with expectations at US$721m, statutory losses exploded to US$0.10 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Helios Towers

Taking into account the latest results, the most recent consensus for Helios Towers from five analysts is for revenues of US$794.6m in 2024. If met, it would imply a decent 10% increase on its revenue over the past 12 months. Earnings are expected to improve, with Helios Towers forecast to report a statutory profit of US$0.026 per share. Before this earnings announcement, the analysts had been modelling revenues of US$800.4m and losses of US$0.0014 per share in 2024. While there's been no material change to the revenue estimates, there's been a pretty clear upgrade to earnings estimates, with the analysts expecting a per-share profit compared to previous expectations of a loss. So it seems like the latest results have led to a significant increase in sentiment for Helios Towers.

There's been no major changes to the consensus price target of UK£1.67, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Helios Towers, with the most bullish analyst valuing it at UK£2.66 and the most bearish at UK£0.99 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Helios Towers' revenue growth is expected to slow, with the forecast 10% annualised growth rate until the end of 2024 being well below the historical 14% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 1.9% annually. Even after the forecast slowdown in growth, it seems obvious that Helios Towers is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts now expect Helios Towers to become profitable next year, compared to previous expectations that it would report a loss. 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. The consensus price target held steady at UK£1.67, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Helios Towers analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Helios Towers has 1 warning sign we think you should be aware of.

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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.