Analysts made a financial statement on Hunter Group ASA’s first quarter report (OB: HUNT)

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Shareholders may have noticed that Hunter ASA Group (OB: HUNT) filed its first quarter results around the same time last week. The first response was not positive, with stocks falling 3.5% to 3.19kr last week. Hunter Group revenue fell short, falling 4.0% below plan to $ 12 million. However, statutory earnings per share (EPS) performed much better, reaching breakeven. Following the result, analysts updated their earnings model, and it would be good to know if they think there has been a strong change in the outlook for the company, or if it is like habit. With that in mind, we’ve rounded up the latest statutory forecast to see what analysts expect for next year.

Check out our latest analysis for Hunter Group

OB: HUNT Earnings and Revenue Growth May 30, 2021

Following the recent earnings report, the consensus of four analysts covering Hunter Group is of US $ 41.0 million in 2021 revenue, implying a substantial 59% drop in sales from the 12 last months. Statutory earnings per share are expected to plunge 79% to $ 0.02 during the same time frame. Before this report was written, analysts had modeled revenues of US $ 41.1 million and earnings per share (EPS) of US $ 0.029 in 2021. So there has certainly been a drop in sentiment after the latest results. , noting the pretty serious cut to the new BPA forecast.

It might come as a surprise to learn that the consensus price target has remained broadly unchanged at 3.32kr, with analysts clearly hinting that the expected decline in earnings is unlikely to have much of an impact on valuation. It might also be instructive to look at the range of analysts’ estimates, to gauge how different outliers are from the average. There are a few variations of perceptions on Hunter Group, with the most bullish analyst valuing it at 3.75kr and the most bearish at 3.00kr per share. The narrowness of the estimates could suggest that the company’s future is relatively easy to gauge, or that analysts have a solid view of its prospects.

One way to get more context on these forecasts is to look at how they stack up against both past performance and the performance of other companies in the same industry. We stress that sales are expected to reverse, with a forecast of 70% annualized revenue decline by the end of 2021. This is a notable change from the historic 90% growth over the past five years. last years. Compare that with our data, which suggests that other companies in the same industry are expected to see their revenues increase by 2.8% per year overall. So while its revenue is expected to decline, this cloud has no bright side – the Hunter Group is expected to lag behind the industry at large.

The bottom line

The most important thing to remember is that analysts have lowered their earnings per share estimates, showing that there has been a marked drop in sentiment following these results. On the positive side, there has been no major change in income estimates; although forecasts imply that revenues will outperform the industry as a whole. The consensus price target remained at US $ 3.32 as the latest estimates were not sufficient to impact their price targets.

With this in mind, we still believe that the long-term trajectory of the company is much more important for investors to consider. We have forecasts for Hunter Group through 2023, and you can see them for free on our platform here.

It is also worth noting that we have found 3 warning signs for Hunter Group (1 is concerning!) That you should take into consideration.

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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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