Stock Analysis

Hansa Biopharma AB (publ) (STO:HNSA) Just Released Its Third-Quarter Earnings: Here's What Analysts Think

OM:HNSA
Source: Shutterstock

Last week, you might have seen that Hansa Biopharma AB (publ) (STO:HNSA) released its third-quarter result to the market. The early response was not positive, with shares down 2.6% to kr40.50 in the past week. Revenues of kr49m came in a modest 3.8% below forecasts. Statutory losses were a relative bright spot though, with a per-share loss of kr1.53 coming in a substantial 37% smaller than what the analysts had expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Hansa Biopharma after the latest results.

See our latest analysis for Hansa Biopharma

earnings-and-revenue-growth
OM:HNSA Earnings and Revenue Growth October 20th 2024

Taking into account the latest results, the consensus forecast from Hansa Biopharma's four analysts is for revenues of kr356.4m in 2025. This reflects a substantial 88% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 23% to kr7.44. Before this earnings announcement, the analysts had been modelling revenues of kr356.4m and losses of kr8.52 per share in 2025. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a notable improvement in losses per share in particular.

The average price target held steady at kr100.00, seeming to indicate that business is performing in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Hansa Biopharma analyst has a price target of kr175 per share, while the most pessimistic values it at kr46.00. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the 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 Hansa Biopharma'shistorical trends, as the 66% annualised revenue growth to the end of 2025 is roughly in line with the 55% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 18% per year. So it's pretty clear that Hansa Biopharma is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. 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 kr100.00, 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. At Simply Wall St, we have a full range of analyst estimates for Hansa Biopharma going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Hansa Biopharma has 5 warning signs (and 1 which is concerning) we think you should know about.

Valuation is complex, but we're here to simplify it.

Discover if Hansa Biopharma might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

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.