Hexagon Composites ASA (OB:HEX) Just Reported Second-Quarter Earnings And Analysts Are Lifting Their Estimates
The investors in Hexagon Composites ASA's (OB:HEX) will be rubbing their hands together with glee today, after the share price leapt 26% to kr13.78 in the week following its quarterly results. It was a negative result overall, with revenues coming in 10% less than what the analysts expected, at kr627m. 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.
Taking into account the latest results, the most recent consensus for Hexagon Composites from four analysts is for revenues of kr3.21b in 2026. If met, it would imply a substantial 20% increase on its revenue over the past 12 months. Losses are expected to be contained, narrowing 12% from last year to kr1.70. Yet prior to the latest earnings, the analysts had been forecasting revenues of kr3.06b and losses of kr1.92 per share in 2026. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a cut to loss per share in particular.
See our latest analysis for Hexagon Composites
It will come as no surprise to learn thatthe analysts have increased their price target for Hexagon Composites 57% to kr18.63on the back of these upgrades. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Hexagon Composites analyst has a price target of kr24.00 per share, while the most pessimistic values it at kr13.50. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Hexagon Composites is forecast to grow faster in the future than it has in the past, with revenues expected to display 45% annualised growth until the end of 2026. If achieved, this would be a much better result than the 0.6% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 11% annually. Not only are Hexagon Composites' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that in mind, we wouldn't be too quick to come to a conclusion on Hexagon Composites. Long-term earnings power is much more important than next year's profits. We have forecasts for Hexagon Composites going out to 2028, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with Hexagon Composites .
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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.