Hansa Biopharma AB (publ) (STO:HNSA) Yearly Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Hansa Biopharma AB (publ) (STO:HNSA) shareholders are probably feeling a little disappointed, since its shares fell 6.9% to kr59.05 in the week after its latest full-year results. The results were mixed overall, with revenues slightly ahead of analyst estimates at kr155m. Statutory losses by contrast were 5.9% larger than predictions at kr13.57 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Hansa Biopharma

Taking into account the latest results, the most recent consensus for Hansa Biopharma from five analysts is for revenues of kr173.9m in 2023 which, if met, would be a decent 13% increase on its sales over the past 12 months. Per-share losses are expected to explode, reaching kr14.30 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of kr166.5m and losses of kr12.96 per share in 2023. While this year's revenue estimates increased, there was also a notable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The consensus price target stayed unchanged at kr184, seeming to suggest that higher forecast losses are not expected to have a long term impact on the valuation. 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 kr245 per share, while the most pessimistic values it at kr128. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Hansa Biopharma's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Hansa Biopharma's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 79% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 24% per year. Factoring in the forecast slowdown in growth, it seems obvious that Hansa Biopharma is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Hansa Biopharma. They also upgraded their revenue estimates for next year, even though sales are expected to grow slower than the wider industry. The consensus price target held steady at kr184, 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 Hansa Biopharma. 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 Hansa Biopharma going out to 2025, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for Hansa Biopharma that you should be aware of.

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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.