HydrogenPro ASA (OB:HYPRO) Released Earnings Last Week And Analysts Lifted Their Price Target To kr49.93

HydrogenPro ASA (OB:HYPRO) missed earnings with its latest third-quarter results, disappointing overly-optimistic forecasts. Statutory earnings fell substantially short of expectations, with revenues of kr68m missing forecasts by 52%. Losses exploded, with a per-share loss of kr0.56 some 63% below prior forecasts. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

View our latest analysis for HydrogenPro

Taking into account the latest results, the current consensus from HydrogenPro's one analyst is for revenues of kr1.93b in 2025. This would reflect a sizeable 662% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 61% to kr0.90. Before this latest report, the consensus had been expecting revenues of kr1.36b and kr0.62 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analyst significantly increasing their revenue forecasts while also expecting losses per share to increase. It looks like the top line growth will not be achieved without incremental costs.

It will come as a surprise to learn that the consensus price target rose 43% to kr49.93, with the analyst clearly more interested in growing revenue, even as losses intensify.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the HydrogenPro's past performance and to peers in the same industry. It's clear from the latest estimates that HydrogenPro's rate of growth is expected to accelerate meaningfully, with the forecast 4x annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 60% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that HydrogenPro is expected to grow much 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 HydrogenPro. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

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 analyst estimates for HydrogenPro going out as far as 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - HydrogenPro has 4 warning signs (and 1 which is a bit unpleasant) we think you should know about.

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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.