Huddly AS (OB:HDLY) Just Reported, And Analysts Assigned A kr13.50 Price Target

The yearly results for Huddly AS (OB:HDLY) were released last week, making it a good time to revisit its performance. The results look positive overall; while revenues of kr337m were in line with analyst predictions, statutory losses were 5.9% smaller than expected, with Huddly losing kr1.45 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.

View our latest analysis for Huddly

Taking into account the latest results, the most recent consensus for Huddly from sole analyst is for revenues of kr494.0m in 2022 which, if met, would be a sizeable 47% increase on its sales over the past 12 months. Huddly is also expected to turn profitable, with statutory earnings of kr0.24 per share. Yet prior to the latest earnings, the analyst had been anticipated revenues of kr472.0m and earnings per share (EPS) of kr0.25 in 2022. So it's pretty clear consensus is mixed on Huddly after the latest results; whilethe analyst lifted revenue numbers, they also administered a minor downgrade to per-share earnings expectations.

The consensus price target fell 10.0% to kr13.50, suggesting that the analyst are primarily focused on earnings as the driver of value for this business.

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. It's clear from the latest estimates that Huddly's rate of growth is expected to accelerate meaningfully, with the forecast 47% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 36% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Huddly to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Huddly. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Huddly. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

Before you take the next step you should know about the 1 warning sign for Huddly that we have uncovered.

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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.