Earnings Update: Hexagon Purus ASA (OB:HPUR) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts

The investors in Hexagon Purus ASA's (OB:HPUR) will be rubbing their hands together with glee today, after the share price leapt 29% to kr6.67 in the week following its quarterly results. The results look positive overall; while revenues of kr407m were in line with analyst predictions, statutory losses were 6.5% smaller than expected, with Hexagon Purus losing kr0.58 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Hexagon Purus

Following the latest results, Hexagon Purus' five analysts are now forecasting revenues of kr2.10b in 2024. This would be a major 42% improvement in revenue compared to the last 12 months. Per-share losses are predicted to creep up to kr2.57. Before this earnings announcement, the analysts had been modelling revenues of kr2.11b and losses of kr2.43 per share in 2024. Overall it looks as though the analysts were a bit mixed on the latest consensus updates. Although revenue forecasts held steady, the consensus also made a modest increase to its losses per share forecasts.

The consensus price target held steady at kr10.63, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company'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. Currently, the most bullish analyst values Hexagon Purus at kr15.00 per share, while the most bearish prices it at kr7.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Hexagon Purus' past performance and to peers in the same industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 59% growth on an annualised basis. That is in line with its 55% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 11% annually. So it's pretty clear that Hexagon Purus is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Hexagon Purus. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at kr10.63, with the latest estimates not enough to have an impact on their price targets.

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 forecasts for Hexagon Purus going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Hexagon Purus (including 1 which is a bit concerning) .

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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.