Analysts Have Lowered Expectations For HIVE Digital Technologies Ltd. (TSE:HIVE) After Its Latest Results
Investors in HIVE Digital Technologies Ltd. (TSE:HIVE) had a good week, as its shares rose 2.2% to close at CA$2.35 following the release of its quarterly results. Revenues of US$85m beat expectations by a respectable 7.5%, although statutory losses per share increased. HIVE Digital Technologies lost US$0.29, which was 64% more than what the analysts had included in their models. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the consensus forecast from HIVE Digital Technologies' eight analysts is for revenues of US$350.9m in 2027. This reflects an okay 6.7% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 23% to US$1.10. Before this latest report, the consensus had been expecting revenues of US$372.1m and US$0.93 per share in losses. So it's pretty clear the analysts have mixed opinions on HIVE Digital Technologies after this update; revenues were downgraded and per-share losses expected to increase.
Check out our latest analysis for HIVE Digital Technologies
The analysts lifted their price target 167% to CA$6.00, implicitly signalling that lower earnings per share are not expected to have a longer-term impact on the stock's value.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2027 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 13% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 14% annually. It's clear that while HIVE Digital Technologies' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at HIVE Digital Technologies. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. 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.
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 estimates - from multiple HIVE Digital Technologies analysts - going out to 2028, and you can see them free on our platform here.
It is also worth noting that we have found 5 warning signs for HIVE Digital Technologies (1 makes us a bit uncomfortable!) that you need to take into consideration.
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