Hexatronic Group AB (publ) Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Shareholders of Hexatronic Group AB (publ) (STO:HTRO) will be pleased this week, given that the stock price is up 13% to kr22.10 following its latest third-quarter results. Revenues of kr1.9b beat expectations by 4.8%. Unfortunately statutory earnings per share (EPS) fell well short of the mark, turning in a loss of kr0.59 compared to previous analyst expectations of a profit. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Taking into account the latest results, the current consensus from Hexatronic Group's three analysts is for revenues of kr7.73b in 2026. This would reflect a reasonable 3.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 195% to kr1.85. Before this earnings report, the analysts had been forecasting revenues of kr7.59b and earnings per share (EPS) of kr1.85 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Hexatronic Group

The analysts reconfirmed their price target of kr25.33, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Hexatronic Group, with the most bullish analyst valuing it at kr30.00 and the most bearish at kr22.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. It's pretty clear that there is an expectation that Hexatronic Group's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.5% growth on an annualised basis. This is compared to a historical growth rate of 23% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.3% per year. Factoring in the forecast slowdown in growth, it seems obvious that Hexatronic Group is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Hexatronic Group's revenue is expected to perform worse 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 in mind, we wouldn't be too quick to come to a conclusion on Hexatronic Group. Long-term earnings power is much more important than next year's profits. We have forecasts for Hexatronic Group going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Hexatronic Group (1 is a bit concerning!) that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.