Analysts Have Lowered Expectations For House of Control Group AS (OB:HOC) After Its Latest Results

House of Control Group AS (OB:HOC) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasts think of the company following this report. It was a pretty bad result overall; while revenues were in line with expectations at kr177m, statutory losses exploded to kr2.12 per share. 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. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

See our latest analysis for House of Control Group

Taking into account the latest results, the consensus forecast from House of Control Group's sole analyst is for revenues of kr226.5m in 2022, which would reflect a substantial 28% improvement in sales compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 50% to kr1.06. Yet prior to the latest earnings, the analyst had been forecasting revenues of kr250.5m and losses of kr1.01 per share in 2022. So it's pretty clear consensus is more negative on House of Control Group after the new consensus numbers; while the analyst trimmed their revenue estimates, they also administered a pronounced increase to per-share loss expectations.

The average price target fell 26% to kr10.00, implicitly signalling that lower earnings per share are a leading indicator for House of Control Group's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2022 brings more of the same, according to the analyst, with revenue forecast to display 28% growth on an annualised basis. That is in line with its 27% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 22% per year. So it's pretty clear that House of Control Group is forecast to grow substantially 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 House of Control Group. They also downgraded their revenue estimates, although industry data suggests that House of Control Group's revenues are expected to grow faster than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of House of Control Group's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for House of Control Group going out as far as 2024, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with House of Control Group .

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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.