Earnings Miss: Hanza AB (publ) Missed EPS By 33% And Analysts Are Revising Their Forecasts

As you might know, Hanza AB (publ) (STO:HANZA) last week released its latest quarterly, and things did not turn out so great for shareholders. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at kr1.3b, statutory earnings missed forecasts by an incredible 33%, coming in at just kr0.90 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

We've discovered 3 warning signs about Hanza. View them for free.

After the latest results, the four analysts covering Hanza are now predicting revenues of kr5.83b in 2025. If met, this would reflect a notable 18% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 112% to kr5.41. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr5.92b and earnings per share (EPS) of kr5.86 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

View our latest analysis for Hanza

It might be a surprise to learn that the consensus price target was broadly unchanged at kr85.67, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Hanza analyst has a price target of kr95.00 per share, while the most pessimistic values it at kr80.00. This is a very narrow spread of estimates, implying either that Hanza is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Hanza's growth to accelerate, with the forecast 25% annualised growth to the end of 2025 ranking favourably alongside historical growth of 19% 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 7.4% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Hanza is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at kr85.67, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Hanza analysts - 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 3 warning signs for Hanza (of which 1 is a bit concerning!) 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.