Hemnet Group AB (publ) Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Last week, you might have seen that Hemnet Group AB (publ) (STO:HEM) released its first-quarter result to the market. The early response was not positive, with shares down 8.9% to kr333 in the past week. Revenues kr329m disappointed slightly, at5.7% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of kr1.24 coming in 10% above what was anticipated. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

We've discovered 1 warning sign about Hemnet Group. View them for free.

Following the latest results, Hemnet Group's eight analysts are now forecasting revenues of kr1.85b in 2025. This would be a huge 26% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 38% to kr7.41. In the lead-up to this report, the analysts had been modelling revenues of kr1.85b and earnings per share (EPS) of kr7.29 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for Hemnet Group

The analysts reconfirmed their price target of kr414, showing that the business is executing well and in line with expectations. 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 Hemnet Group analyst has a price target of kr473 per share, while the most pessimistic values it at kr370. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Hemnet Group's rate of growth is expected to accelerate meaningfully, with the forecast 36% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 22% p.a. over the past three 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 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, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Hemnet Group going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Hemnet Group .

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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.