Hemnet Group AB (publ) Just Missed Earnings - But Analysts Have Updated Their Models

It's shaping up to be a tough period for Hemnet Group AB (publ) (STO:HEM), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. Hemnet Group missed analyst forecasts, with revenues of kr372m and statutory earnings per share (EPS) of kr1.47, falling short by 3.0% and 8.1% respectively. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Hemnet Group

Following the latest results, Hemnet Group's eight analysts are now forecasting revenues of kr1.80b in 2025. This would be a sizeable 38% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 72% to kr7.75. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr1.81b and earnings per share (EPS) of kr8.02 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

The consensus price target held steady at kr421, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Hemnet Group at kr445 per share, while the most bearish prices it at kr380. This is a very narrow spread of estimates, implying either that Hemnet Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Hemnet Group's past performance and to peers in the same industry. It's clear from the latest estimates that Hemnet Group's rate of growth is expected to accelerate meaningfully, with the forecast 29% 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 17% 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. 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. The consensus price target held steady at kr421, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Hemnet Group going out to 2026, 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.