Hansen Technologies Limited Just Missed Earnings - But Analysts Have Updated Their Models

In This Article:

It's been a good week for Hansen Technologies Limited (ASX:HSN) shareholders, because the company has just released its latest yearly results, and the shares gained 5.8% to AU$4.55. It looks like a pretty bad result, all things considered. Although revenues of AU$353m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 28% to hit AU$0.10 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Hansen Technologies

earnings-and-revenue-growth
earnings-and-revenue-growth

Taking into account the latest results, the consensus forecast from Hansen Technologies' nine analysts is for revenues of AU$396.9m in 2025. This reflects a solid 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 32% to AU$0.14. In the lead-up to this report, the analysts had been modelling revenues of AU$388.3m and earnings per share (EPS) of AU$0.18 in 2025. So it's pretty clear the analysts have mixed opinions on Hansen Technologies after the latest results; even though they upped their revenue numbers, it came at the cost of a large cut to per-share earnings expectations.

The consensus price target was unchanged at AU$5.74, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Hansen Technologies at AU$7.35 per share, while the most bearish prices it at AU$3.85. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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 Hansen Technologies' growth to accelerate, with the forecast 12% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.0% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 15% per year. So it's clear that despite the acceleration in growth, Hansen Technologies is expected to grow meaningfully slower than the industry average.