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The investors in HF Foods Group Inc.'s (NASDAQ:HFFG) will be rubbing their hands together with glee today, after the share price leapt 68% to US$2.93 in the week following its annual results. Revenues were in line with expectations, at US$1.2b, while statutory losses ballooned to US$0.92 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is 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 estimate to see what could be in store for next year.
See our latest analysis for HF Foods Group
Taking into account the latest results, the most recent consensus for HF Foods Group from lone analyst is for revenues of US$1.23b in 2025. If met, it would imply a satisfactory 2.7% 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$0.20 per share. Before this earnings report, the analyst had been forecasting revenues of US$1.22b and earnings per share (EPS) of US$0.13 in 2025. There was no real change to the revenue estimates, but the analyst does seem more bullish on earnings, given the sizeable expansion in earnings per share expectations following these results.
The consensus price target rose 17% to US$7.00, suggesting that higher earnings estimates flow through to the stock's valuation as well.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that HF Foods Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.7% growth on an annualised basis. This is compared to a historical growth rate of 20% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.7% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than HF Foods Group.
The Bottom Line
The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards HF Foods Group following these results. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that HF Foods Group's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.