Hoist Finance AB (publ) (STO:HOFI) Analysts Are Reducing Their Forecasts For This Year

Today is shaping up negative for Hoist Finance AB (publ) (STO:HOFI) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

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After the downgrade, the consensus from Hoist Finance's two analysts is for revenues of kr4.1b in 2025, which would reflect a measurable 3.0% decline in sales compared to the last year of performance. Statutory earnings per share are anticipated to shrink 2.7% to kr9.79 in the same period. Prior to this update, the analysts had been forecasting revenues of kr4.6b and earnings per share (EPS) of kr11.26 in 2025. Indeed, we can see that the analysts are a lot more bearish about Hoist Finance's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Hoist Finance

Analysts made no major changes to their price target of kr119, suggesting the downgrades are not expected to have a long-term impact on Hoist Finance's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 4.0% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 14% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 12% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Hoist Finance is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Hoist Finance's revenues are expected to grow slower than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of Hoist Finance.

Worse, Hoist Finance is labouring under a substantial debt burden, which - if today's forecasts prove accurate - the forecast downgrade could potentially exacerbate. See why we're concerned about Hoist Finance's balance sheet by visiting our risks dashboard for free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.