HF Foods Group Inc. (NASDAQ:HFFG) Just Reported And Analysts Have Been Lifting Their Price Targets

Shareholders of HF Foods Group Inc. (NASDAQ:HFFG) will be pleased this week, given that the stock price is up 20% to US$3.42 following its latest second-quarter results. Results were roughly in line with estimates, with revenues of US$315m and statutory earnings per share of US$0.02. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, HF Foods Group's two analysts currently expect revenues in 2025 to be US$1.23b, approximately in line with the last 12 months. Earnings are expected to improve, with HF Foods Group forecast to report a statutory profit of US$0.07 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.23b and earnings per share (EPS) of US$0.065 in 2025. So the consensus seems to have become somewhat more optimistic on HF Foods Group's earnings potential following these results.

View our latest analysis for HF Foods Group

The consensus price target rose 17% to US$7.00, suggesting that higher earnings estimates flow through to the stock's valuation as well.

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. It's pretty clear that there is an expectation that HF Foods Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.9% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.9% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than HF Foods Group.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around HF Foods Group's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 analyst estimates for HF Foods Group going out as far as 2026, and you can see them free on our platform here.

You can also see whether HF Foods Group is carrying too much debt, and whether its balance sheet is healthy, for free on our 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.