Humble Group AB (publ) (STO:HUMBLE) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

It's been a good week for Humble Group AB (publ) (STO:HUMBLE) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.3% to kr17.17. Revenues were kr879m, with Humble Group reporting some 2.0% below analyst expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Humble Group

Taking into account the latest results, the consensus forecast from Humble Group's twin analysts is for revenues of kr4.21b in 2022, which would reflect a sizeable 77% improvement in sales compared to the last 12 months. Per-share losses are supposed to see a sharp uptick, reaching kr2.16. Yet prior to the latest earnings, the analysts had been forecasting revenues of kr4.21b and losses of kr2.20 per share in 2022.

As a result there was no major change to the consensus price target of kr33.83, implying that the business is trading roughly in line with expectations despite ongoing losses.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Humble Group's past performance and to peers in the same industry. The period to the end of 2022 brings more of the same, according to the analysts, with revenue forecast to display 114% growth on an annualised basis. That is in line with its 97% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 15% per year. So although Humble Group is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target held steady at kr33.83, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Humble Group. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Humble Group going out as far as 2024, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for Humble Group (1 is concerning!) 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.