Last week saw the newest third-quarter earnings release from HF Foods Group Inc. (NASDAQ:HFFG), an important milestone in the company's journey to build a stronger business. Revenues came in at US$320m, in line with estimates, while HF Foods Group reported a statutory loss of US$0.08 per share, well short of prior analyst forecasts for a profit. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the current consensus from HF Foods Group's three analysts is for revenues of US$1.35b in 2027. This would reflect a credible 7.0% increase on its revenue over the past 12 months. Earnings are expected to improve, with HF Foods Group forecast to report a statutory profit of US$0.21 per share. Before this earnings report, the analysts had been forecasting revenues of US$1.34b and earnings per share (EPS) of US$0.20 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
See our latest analysis for HF Foods Group
The consensus price target fell 19% to US$5.67, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on HF Foods Group, with the most bullish analyst valuing it at US$6.00 and the most bearish at US$5.00 per share. This is a very narrow spread of estimates, implying either that HF Foods Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the HF Foods Group's past performance and to peers in the same industry. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 5.6% growth on an annualised basis. That is in line with its 6.8% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.0% annually. It's clear that while HF Foods Group's 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 here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards HF Foods Group following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of HF Foods Group's future valuation.
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 forecasts for HF Foods Group going out to 2028, and you can see them free on our platform here.
Even so, be aware that HF Foods Group is showing 2 warning signs in our investment analysis , and 1 of those shouldn't be ignored...
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