Earnings Update: Hemnet Group AB (publ) (STO:HEM) Just Reported Its Full-Year Results And Analysts Are Updating Their Forecasts

Hemnet Group AB (publ) (STO:HEM) last week reported its latest full-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues of kr1.4b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at kr5.00, missing estimates by 2.6%. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Hemnet Group

Taking into account the latest results, the most recent consensus for Hemnet Group from nine analysts is for revenues of kr1.84b in 2025. If met, it would imply a huge 32% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 45% to kr7.30. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr1.80b and earnings per share (EPS) of kr7.49 in 2025. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a huge to revenue, the consensus also made a minor downgrade to its earnings per share forecasts.

The consensus price target was unchanged at kr414, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. 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. The most optimistic Hemnet Group analyst has a price target of kr450 per share, while the most pessimistic values it at kr384. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Hemnet Group is an easy business to forecast or the the analysts are all using similar assumptions.

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 clear from the latest estimates that Hemnet Group's rate of growth is expected to accelerate meaningfully, with the forecast 32% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 20% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Hemnet Group is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Hemnet Group. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at kr414, with the latest estimates not enough to have an impact on their price targets.

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 Hemnet Group analysts - going out to 2027, and you can see them free on our platform here.

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

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.