Hemnet Group AB (publ) (STO:HEM) Just Released Its Second-Quarter Results And Analysts Are Updating Their Estimates

It's been a good week for Hemnet Group AB (publ) (STO:HEM) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.3% to kr296. Hemnet Group reported in line with analyst predictions, delivering revenues of kr484m and statutory earnings per share of kr1.94, suggesting the business is executing well and in line with its plan. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Hemnet Group after the latest results.

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Taking into account the latest results, the most recent consensus for Hemnet Group from eleven analysts is for revenues of kr1.74b in 2025. If met, it would imply a notable 12% increase on its revenue over the past 12 months. Per-share earnings are expected to step up 18% to kr6.83. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr1.80b and earnings per share (EPS) of kr7.16 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

Check out our latest analysis for Hemnet Group

Despite the cuts to forecast earnings, there was no real change to the kr354 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. Currently, the most bullish analyst values Hemnet Group at kr482 per share, while the most bearish prices it at kr227. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Hemnet Group'shistorical trends, as the 26% annualised revenue growth to the end of 2025 is roughly in line with the 23% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 9.1% annually. So although Hemnet Group is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will 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 in mind, we wouldn't be too quick to come to a conclusion on Hemnet Group. Long-term earnings power is much more important than next year's profits. 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..

It might also be worth considering whether Hemnet Group's debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.