Hexagon Purus ASA (OB:HPUR) Second-Quarter Results: Here's What Analysts Are Forecasting For This Year

Hexagon Purus ASA (OB:HPUR) shareholders are probably feeling a little disappointed, since its shares fell 9.9% to kr8.70 in the week after its latest second-quarter results. Hexagon Purus beat revenue forecasts by a solid 13%, hitting kr528m. Statutory losses also blew out, with the loss per share reaching kr0.78, some 20% bigger than the analysts 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Hexagon Purus

Taking into account the latest results, the current consensus from Hexagon Purus' five analysts is for revenues of kr2.13b in 2024. This would reflect a substantial 27% increase on its revenue over the past 12 months. Losses are forecast to narrow 4.3% to kr2.59 per share. Before this latest report, the consensus had been expecting revenues of kr2.10b and kr2.33 per share in losses. While this year's revenue estimates held steady, there was also a noticeable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

As a result, there was no major change to the consensus price target of kr10.13, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Hexagon Purus analyst has a price target of kr13.00 per share, while the most pessimistic values it at kr7.50. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. The analysts are definitely expecting Hexagon Purus' growth to accelerate, with the forecast 60% annualised growth to the end of 2024 ranking favourably alongside historical growth of 50% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Hexagon Purus is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. 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 kr10.13, 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 estimates - from multiple Hexagon Purus analysts - 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 makes us a bit uncomfortable) .

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com