HMS Networks AB (publ) (STO:HMS) Just Released Its Second-Quarter Earnings: Here's What Analysts Think
As you might know, HMS Networks AB (publ) (STO:HMS) recently reported its quarterly numbers. The result was positive overall - although revenues of kr991m were in line with what the analysts predicted, HMS Networks surprised by delivering a statutory profit of kr3.10 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on HMS Networks after the latest results.
After the latest results, the five analysts covering HMS Networks are now predicting revenues of kr4.06b in 2026. If met, this would reflect a credible 6.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 24% to kr13.65. In the lead-up to this report, the analysts had been modelling revenues of kr4.05b and earnings per share (EPS) of kr13.87 in 2026. 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.
Check out our latest analysis for HMS Networks
It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr599. 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 HMS Networks analyst has a price target of kr704 per share, while the most pessimistic values it at kr523. 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.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 14% growth on an annualised basis. That is in line with its 14% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 1.5% per year. So it's pretty clear that HMS Networks is forecast to grow substantially faster than its industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than 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.
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 HMS Networks going out to 2028, and you can see them free on our platform here..
You still need to take note of risks, for example - HMS Networks has 1 warning sign we think 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.