Humble Group AB (publ) (STO:HUMBLE) Annual Results: Here's What Analysts Are Forecasting For This Year

It's been a sad week for Humble Group AB (publ) (STO:HUMBLE), who've watched their investment drop 12% to kr7.81 in the week since the company reported its yearly result. It looks like the results were a bit of a negative overall. While revenues of kr7.7b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.3% to hit kr0.27 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the most recent consensus for Humble Group from three analysts is for revenues of kr8.33b in 2025. If met, it would imply a decent 8.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 70% to kr0.47. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr8.64b and earnings per share (EPS) of kr0.49 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

Check out our latest analysis for Humble Group

Despite the cuts to forecast earnings, there was no real change to the kr12.40 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Humble Group analyst has a price target of kr13.00 per share, while the most pessimistic values it at kr11.80. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. We would highlight that Humble Group's revenue growth is expected to slow, with the forecast 8.0% annualised growth rate until the end of 2025 being well below the historical 57% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.8% per year. So it's pretty clear that, while Humble Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Humble Group. They also downgraded Humble Group's revenue estimates, but industry data suggests that it is expected to grow faster 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. At Simply Wall St, we have a full range of analyst estimates for Humble Group going out to 2027, and you can see them free on our platform here. .

You can also view our analysis of Humble Group's balance sheet, and whether we think Humble Group is carrying too much debt, for free 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.