Earnings Miss: Hanza AB (publ) Missed EPS By 41% 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. Results showed a clear earnings miss, with kr1.3b revenue coming in 5.5% lower than what the analystsexpected. Statutory earnings per share (EPS) of kr0.77 missed the mark badly, arriving some 41% below what was expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Hanza

Taking into account the latest results, the most recent consensus for Hanza from five analysts is for revenues of kr5.24b in 2024. If met, it would imply a substantial 21% increase on its revenue over the past 12 months. Per-share earnings are expected to step up 11% to kr4.79. In the lead-up to this report, the analysts had been modelling revenues of kr5.36b and earnings per share (EPS) of kr5.47 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

The analysts made no major changes to their price target of kr84.25, suggesting the downgrades are not expected to have a long-term impact on Hanza's 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 Hanza analyst has a price target of kr100.00 per share, while the most pessimistic values it at kr56.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Hanza's past performance and to peers in the same industry. It's clear from the latest estimates that Hanza's rate of growth is expected to accelerate meaningfully, with the forecast 29% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 19% p.a. 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 8.0% 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at kr84.25, 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 forecasts for Hanza going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Hanza .

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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.