Hexagon Purus ASA (OB:HPUR) Consensus Forecasts Have Become A Little Darker Since Its Latest Report

Hexagon Purus ASA (OB:HPUR) just released its latest annual report and things are not looking great. The numbers were fairly weak, with revenue of kr1.9b missing analyst predictions by 3.2%, and (statutory) losses of kr2.59 per share being slightly larger than what the analysts had 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Hexagon Purus

Taking into account the latest results, the six analysts covering Hexagon Purus provided consensus estimates of kr1.74b revenue in 2025, which would reflect a perceptible 7.3% decline over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 21% to kr2.03. Yet prior to the latest earnings, the analysts had been forecasting revenues of kr3.03b and losses of kr1.79 per share in 2025. So there's been quite a change-up of views after the recent consensus updates, withthe analysts making a serious cut to their revenue outlook while also expecting losses per share to increase.

The consensus price target fell 45% to kr4.03, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Hexagon Purus analyst has a price target of kr8.00 per share, while the most pessimistic values it at kr1.80. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 7.3% by the end of 2025. This indicates a significant reduction from annual growth of 47% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 12% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Hexagon Purus is expected to lag the wider 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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Hexagon Purus' future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Hexagon Purus going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 5 warning signs for Hexagon Purus (2 are a bit unpleasant!) that 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.