Hufvudstaden AB (publ) Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Investors in Hufvudstaden AB (publ) (STO:HUFV A) had a good week, as its shares rose 2.8% to close at kr130 following the release of its quarterly results. It looks like the results were a bit of a negative overall. While revenues of kr802m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 10.0% to hit kr1.30 per share. 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. 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 current consensus from Hufvudstaden's four analysts is for revenues of kr3.41b in 2026. This would reflect a satisfactory 5.8% increase on its revenue over the past 12 months. Before this earnings report, the analysts had been forecasting revenues of kr3.40b and earnings per share (EPS) of kr6.78 in 2026. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.

See our latest analysis for Hufvudstaden

We'd also point out that thatthe analysts have made no major changes to their price target of kr126. 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 Hufvudstaden analyst has a price target of kr140 per share, while the most pessimistic values it at kr106. This is a very narrow spread of estimates, implying either that Hufvudstaden 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 Hufvudstaden's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Hufvudstaden's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 4.6% growth on an annualised basis. This is compared to a historical growth rate of 10% over the past five years. Compare this to the 58 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.9% per year. So it's pretty clear that, while Hufvudstaden's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

At least one of Hufvudstaden's four analysts has provided estimates out to 2027, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Hufvudstaden 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.