HydrogenPro ASA (OB:HYPRO) Just Reported And Analysts Have Been Cutting Their Estimates

It's shaping up to be a tough period for HydrogenPro ASA (OB:HYPRO), which a week ago released some disappointing first-quarter results that could have a notable impact on how the market views the stock. It looks to have been a weak result overall, as revenue of kr4.1m were 66% less than the analysts expected. Unsurprisingly, losses were also somewhat larger than was modelled, at kr0.62 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for HydrogenPro

Following the latest results, HydrogenPro's dual analysts are now forecasting revenues of kr520.2m in 2024. This would be an okay 6.4% improvement in revenue compared to the last 12 months. Losses are expected to be contained, narrowing 11% from last year to kr1.42. Before this earnings announcement, the analysts had been modelling revenues of kr690.4m and losses of kr1.46 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, withthe analysts making a serious cut to their revenue forecasts while also reducing the estimated losses the business will incur.

There was no major change to the kr35.15average price target, suggesting that the adjustments to revenue and earnings are not expected to have a long-term impact 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. We would highlight that HydrogenPro's revenue growth is expected to slow, with the forecast 8.6% annualised growth rate until the end of 2024 being well below the historical 273% growth over the last year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than HydrogenPro.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at kr35.15, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on HydrogenPro. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for HydrogenPro you should be aware of, and 1 of them shouldn't be ignored.

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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.