Hemnet Group AB (publ) Just Missed EPS By 6.4%: Here's What Analysts Think Will Happen Next
Investors in Hemnet Group AB (publ) (STO:HEM) had a good week, as its shares rose 5.6% to close at kr85.45 following the release of its quarterly results. Revenues of kr372m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at kr1.24, missing estimates by 6.4%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Hemnet Group after the latest results.
Taking into account the latest results, the consensus forecast from Hemnet Group's eleven analysts is for revenues of kr1.38b in 2026. This reflects a satisfactory 3.3% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be kr4.39, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of kr1.46b and earnings per share (EPS) of kr4.87 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.
Check out our latest analysis for Hemnet Group
It'll come as no surprise then, to learn that the analysts have cut their price target 9.1% to kr119. 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. The most optimistic Hemnet Group analyst has a price target of kr250 per share, while the most pessimistic values it at kr70.00. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Hemnet Group's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Hemnet Group's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 6.7% growth on an annualised basis. This is compared to a historical growth rate of 18% 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 8.4% annually. Factoring in the forecast slowdown in growth, it seems obvious that Hemnet Group is also expected to grow slower than other industry participants.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Hemnet Group. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Hemnet Group analysts - going out to 2028, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 2 warning signs for Hemnet Group you should be aware of.
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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.