Analysts Are Updating Their Hexagon AB (publ) (STO:HEXA B) Estimates After Its Annual Results

It's been a good week for Hexagon AB (publ) (STO:HEXA B) shareholders, because the company has just released its latest yearly results, and the shares gained 8.6% to kr129. Hexagon reported in line with analyst predictions, delivering revenues of €5.4b and statutory earnings per share of €0.38, suggesting the business is executing well and in line with its plan. 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 Hexagon

Taking into account the latest results, the consensus forecast from Hexagon's 17 analysts is for revenues of €5.79b in 2025. This reflects an okay 7.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 14% to €0.43. In the lead-up to this report, the analysts had been modelling revenues of €5.71b and earnings per share (EPS) of €0.43 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr125. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Hexagon at kr160 per share, while the most bearish prices it at kr90.14. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on 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 Hexagon's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Hexagon's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 7.2% growth on an annualised basis. This is compared to a historical growth rate of 9.1% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.0% annually. Factoring in the forecast slowdown in growth, it looks like Hexagon is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at kr125, 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 Hexagon. 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 Hexagon going out to 2027, and you can see them free on our platform here..

It might also be worth considering whether Hexagon's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.