It has been a very good week for H + H International A / S (CPH: HH), its shares have jumped 12% to 154 kroner in the week since its last annual results. The result was broadly positive – although revenue of SEK 2.7 billion was in line with what analysts had predicted, H + H International surprised by posting a statutory profit of SEK 13.50 per share, slightly higher. expectations to. This is an important time for investors, as they can follow a company’s performance in its report, examine experts’ forecasts for next year, and see if there has been a change in the expectations of the company. business. We have put together the most recent statutory forecasts to see if analysts have changed their earnings models as a result of these results.
Check out our latest review for H + H International
Following the latest results, the two analysts of H + H International now forecast a turnover of 2.80 billion crowns in 2021. This would be a satisfactory improvement of 5.3% in sales compared to 12 last months. Earnings per share are expected to rise 12 percent to 15.11 kroner. Prior to this earnings report, analysts were forecasting revenue of Kroner 2.89 billion and earnings per share (EPS) of Kroner 16.02 in 2021. It’s pretty clear that pessimism has surfaced after the latest results. , resulting in lower income prospects. and a slight drop in earnings per share estimates.
Analysts haven’t made any major changes to their price target of 190kr, suggesting that the downgrades should not have a long-term impact on the valuation of H + H International.
Another way to view these estimates is in the context of the bigger picture, such as how the forecast compares to past performance and whether the forecast is more or less bullish relative to other companies in the industry. It’s pretty clear that H + H International’s revenue growth is expected to slow significantly, with revenue by the end of 2021 expected to grow 5.3% on an annualized basis. This is compared to a historic growth rate of 15% over the past five years. Compare that to 44 other companies in this industry with analyst coverage, which are expected to grow their revenue by 4.8% per year. So it’s pretty clear that while H + H International’s revenue growth is expected to slow, it is expected to grow roughly in line with the industry.
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. They also lowered their revenue estimates, although, as we saw earlier, the expected growth is only expected to be about the same as that of the industry as a whole. The consensus price target held steady at NKr 190 as the latest estimates were not enough to impact their price targets.
With that in mind, we wouldn’t be too quick to draw a conclusion on H + H International. Long-term earnings power is much more important than next year’s earnings. At least one analyst has provided forecasts through 2023, which can be viewed for free on our platform here.
However, before you get too excited, we found out 1 warning sign for H + H International that you need to be aware of.
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