Haypp Group AB (publ) (STO:HAYPP) Just Reported Earnings, And Analysts Cut Their Target Price

It's been a mediocre week for Haypp Group AB (publ) (STO:HAYPP) shareholders, with the stock dropping 14% to kr32.75 in the week since its latest yearly results. Revenues were in line with expectations, at kr2.3b, while statutory losses ballooned to kr1.19 per share. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

View our latest analysis for Haypp Group

Taking into account the latest results, the current consensus from Haypp Group's lone analyst is for revenues of kr2.80b in 2022, which would reflect a sizeable 22% increase on its sales over the past 12 months. Earnings are expected to improve, with Haypp Group forecast to report a statutory profit of kr0.33 per share. Before this earnings report, the analyst had been forecasting revenues of kr2.78b and earnings per share (EPS) of kr0.46 in 2022. The analyst seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.

It might be a surprise to learn that the consensus price target fell 22% to kr47.00, with the analyst clearly linking lower forecast earnings to the performance of the stock price.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Haypp Group's revenue growth is expected to slow, with the forecast 22% annualised growth rate until the end of 2022 being well below the historical 41% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 14% per year. So it's pretty clear that, while Haypp Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Haypp Group. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Haypp Group going out as far as 2024, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Haypp Group , and understanding them should be part of your investment process.

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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.