The Hemnet Group AB (publ) (STO:HEM) Yearly Results Are Out And Analysts Have Published New Forecasts

Shareholders of Hemnet Group AB (publ) (STO:HEM) will be pleased this week, given that the stock price is up 10% to kr375 following its latest annual results. 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 2.7%. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the consensus forecast from Hemnet Group's eight analysts is for revenues of kr1.85b in 2025. This reflects a sizeable 33% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 45% to kr7.33. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr1.85b and earnings per share (EPS) of kr7.33 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Hemnet Group

There were no changes to revenue or earnings estimates or the price target of kr427, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Hemnet Group analyst has a price target of kr482 per share, while the most pessimistic values it at kr390. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. The analysts are definitely expecting Hemnet Group's growth to accelerate, with the forecast 33% annualised growth to the end of 2025 ranking favourably alongside historical growth of 20% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 14% per year. 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 important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share 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. The consensus price target held steady at kr427, 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 Hemnet Group. Long-term earnings power is much more important than next year's profits. We have forecasts for Hemnet Group going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Hemnet Group you should know about.

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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.