Yahoo Finance Hansen Technologies Limited (ASX:HSN) Just Released Its Half-Yearly Results And Analysts Are Updating Their Estimates
Hansen Technologies Limited (ASX:HSN) shareholders are probably feeling a little disappointed, since its shares fell 7.6% to AU$5.01 in the week after its latest interim results. Results overall were respectable, with statutory earnings of AU$0.21 per share roughly in line with what the analysts had forecast. Revenues of AU$168m came in 4.6% ahead of analyst predictions. 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 Hansen Technologies after the latest results.
Check out our latest analysis for Hansen Technologies
After the latest results, the eight analysts covering Hansen Technologies are now predicting revenues of AU$352.2m in 2024. If met, this would reflect a reasonable 6.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to plummet 31% to AU$0.15 in the same period. In the lead-up to this report, the analysts had been modelling revenues of AU$334.6m and earnings per share (EPS) of AU$0.21 in 2024. So it's pretty clear the analysts have mixed opinions on Hansen Technologies after the latest results; even though they upped their revenue numbers, it came at the cost of a pretty serious reduction to per-share earnings expectations.
There's been no major changes to the price target of AU$5.98, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. 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. There are some variant perceptions on Hansen Technologies, with the most bullish analyst valuing it at AU$7.00 and the most bearish at AU$3.85 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Hansen Technologies' growth to accelerate, with the forecast 14% annualised growth to the end of 2024 ranking favourably alongside historical growth of 5.8% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 16% per year. Hansen Technologies is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
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 forecasts for Hansen Technologies going out to 2026, and you can see them free on our platform here.
You can also see our analysis of Hansen Technologies' Board and CEO remuneration and experience, and whether company insiders have been buying stock.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
