HydrogenPro ASA Beat Analyst Profit Forecasts, And Analysts Have New Estimates

HydrogenPro ASA (OB:HYPRO) last week reported its latest second-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues of kr140m reported a marginal miss, falling short of forecasts by 6.5%, but earnings were better than expected - statutory profits came in at kr0.11 per share, a nice change from the loss the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on HydrogenPro after the latest results.

See our latest analysis for HydrogenPro

Taking into account the latest results, the consensus forecast from HydrogenPro's dual analysts is for revenues of kr498.7m in 2023. This reflects a sizeable 92% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 28% to kr0.50. Before this earnings announcement, the analysts had been modelling revenues of kr468.9m and losses of kr1.25 per share in 2023. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a very promising decrease in loss per share in particular.

There was no major change to the consensus price target of kr47.75, perhaps suggesting that the analysts remain concerned about ongoing losses despite the improved earnings and revenue outlook.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that HydrogenPro's revenue growth is expected to slow, with the forecast 267% annualised growth rate until the end of 2023 being well below the historical 626% growth over the last year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 17% per year. Even after the forecast slowdown in growth, it seems obvious that HydrogenPro is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at kr47.75, 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. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 5 warning signs for HydrogenPro (2 are a bit unpleasant!) that you need to be mindful 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.