Hexagon AB (publ) Just Missed EPS By 5.7%: Here's What Analysts Think Will Happen Next

It's shaping up to be a tough period for Hexagon AB (publ) (STO:HEXA B), which a week ago released some disappointing third-quarter results that could have a notable impact on how the market views the stock. Hexagon missed analyst forecasts, with revenues of €1.3b and statutory earnings per share (EPS) of €0.088, falling short by 2.2% and 5.7% respectively. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Hexagon

Following the latest results, Hexagon's 19 analysts are now forecasting revenues of €5.79b in 2025. This would be an okay 7.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 18% to €0.44. Yet prior to the latest earnings, the analysts had been anticipated revenues of €5.82b and earnings per share (EPS) of €0.45 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr121. 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 Hexagon analyst has a price target of kr156 per share, while the most pessimistic values it at kr90.33. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Hexagon's revenue growth is expected to slow, with the forecast 5.9% annualised growth rate until the end of 2025 being well below the historical 9.2% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.5% per year. Factoring in the forecast slowdown in growth, it seems obvious that Hexagon is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Hexagon's revenue is expected to perform worse than the wider industry. The consensus price target held steady at kr121, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Hexagon going out to 2026, 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.