HEXPOL AB (publ) (STO:HPOL B) defied analyst predictions to release its second-quarter results, which were ahead of market expectations. Results were good overall, with revenues beating analyst predictions by 3.5% to hit kr5.3b. Statutory earnings per share (EPS) came in at kr1.50, some 2.3% above whatthe analysts had expected. 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. 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 most recent consensus for HEXPOL from six analysts is for revenues of kr19.7b in 2026. If met, it would imply a modest 3.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 9.8% to kr5.83. Before this earnings report, the analysts had been forecasting revenues of kr18.9b and earnings per share (EPS) of kr5.52 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 HEXPOL
It will come as no surprise to learn that the analysts have increased their price target for HEXPOL 9.6% to kr89.83on the back of these upgrades. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic HEXPOL analyst has a price target of kr100.00 per share, while the most pessimistic values it at kr74.00. This is a very narrow spread of estimates, implying either that HEXPOL is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting HEXPOL's growth to accelerate, with the forecast 7.9% annualised growth to the end of 2026 ranking favourably alongside historical growth of 2.7% 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 3.4% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect HEXPOL to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards HEXPOL following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple HEXPOL analysts - going out to 2028, and you can see them free on our platform here.
You can also see whether HEXPOL is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.