Himalaya Shipping Ltd. Just Missed Earnings - But Analysts Have Updated Their Models

Investors in Himalaya Shipping Ltd. (OB:HSHP) had a good week, as its shares rose 4.5% to close at kr78.40 following the release of its full-year results. Statutory earnings per share fell badly short of expectations, coming in at US$0.04, some 48% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$37m. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Himalaya Shipping after the latest results.

Check out our latest analysis for Himalaya Shipping

Taking into account the latest results, the most recent consensus for Himalaya Shipping from four analysts is for revenues of US$132.3m in 2024. If met, it would imply a sizeable 260% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 3,077% to US$1.10. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$119.3m and earnings per share (EPS) of US$0.96 in 2024. There has definitely been an improvement in perception after these results, with the analysts noticeably increasing both their earnings and revenue estimates.

Despite these upgrades,the analysts have not made any major changes to their price target of kr83.75, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Himalaya Shipping analyst has a price target of kr100 per share, while the most pessimistic values it at kr59.80. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Himalaya Shipping's earnings potential next year. Fortunately, they also upgraded their revenue estimates, and our data indicates it is expected to perform better than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Himalaya Shipping analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Himalaya Shipping (including 2 which are a bit unpleasant) .

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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.