Hexatronic Group AB (publ) (STO:HTRO) Just Beat Earnings: Here's What Analysts Think Will Happen Next
A week ago, Hexatronic Group AB (publ) (STO:HTRO) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. It was a decent earnings report, with revenues and statutory earnings per share (EPS) both performing well. Revenues were 11% higher than the analysts had forecast, at kr2.2b, while EPS of kr0.61 beat analyst models by 11%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Hexatronic Group after the latest results.
Taking into account the latest results, the most recent consensus for Hexatronic Group from three analysts is for revenues of kr8.45b in 2026. If met, it would imply a meaningful 10% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 933% to kr2.15. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr8.12b and earnings per share (EPS) of kr1.98 in 2026. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
Check out our latest analysis for Hexatronic Group
It will come as no surprise to learn that the analysts have increased their price target for Hexatronic Group 5.6% to kr44.00on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Hexatronic Group at kr48.00 per share, while the most bearish prices it at kr38.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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. The analysts are definitely expecting Hexatronic Group's growth to accelerate, with the forecast 21% annualised growth to the end of 2026 ranking favourably alongside historical growth of 14% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.2% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Hexatronic Group to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Hexatronic Group's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Hexatronic Group going out to 2028, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 3 warning signs for Hexatronic Group (1 is significant!) that you need to be mindful 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.