Earnings Update: Himalaya Shipping Ltd. (OB:HSHP) Just Reported Its Second-Quarter Results And Analysts Are Updating Their Forecasts
Last week saw the newest quarterly earnings release from Himalaya Shipping Ltd. (OB:HSHP), an important milestone in the company's journey to build a stronger business. It was a pretty mixed result, with revenues beating expectations to hit US$54m. Statutory earnings fell 2.5% short of analyst forecasts, reaching US$0.52 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the current consensus from Himalaya Shipping's five analysts is for revenues of US$198.7m in 2026. This would reflect a solid 19% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 66% to US$1.85. In the lead-up to this report, the analysts had been modelling revenues of US$191.9m and earnings per share (EPS) of US$1.74 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.
View our latest analysis for Himalaya Shipping
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of kr145, suggesting that the forecast performance does not have a long term impact on the company's 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 Himalaya Shipping, with the most bullish analyst valuing it at kr165 and the most bearish at kr96.07 per share. 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. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
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 41% growth on an annualised basis. That is in line with its 51% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 1.0% annually. So it's clear that not only is revenue growth expected to be maintained, but Himalaya Shipping is expected to grow meaningfully 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 Himalaya Shipping's earnings potential next year. Fortunately, they also upgraded their revenue estimates, and our data indicates it is expected to perform better 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.
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 Himalaya Shipping going out to 2028, and you can see them free on our platform here.
Even so, be aware that Himalaya Shipping is showing 1 warning sign in our investment analysis , you should know about...
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