In This Article:
Investors in HUB24 Limited (ASX:HUB) had a good week, as its shares rose 10.0% to close at AU$54.31 following the release of its yearly results. Revenues of AU$328m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at AU$0.56, missing estimates by 7.6%. 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.
Check out our latest analysis for HUB24
Following the latest results, HUB24's 17 analysts are now forecasting revenues of AU$390.8m in 2025. This would be a meaningful 19% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 47% to AU$0.86. Before this earnings report, the analysts had been forecasting revenues of AU$392.3m and earnings per share (EPS) of AU$0.90 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 7.9% to AU$46.72, suggesting the revised estimates are not indicative of a weaker long-term future for the business. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values HUB24 at AU$59.00 per share, while the most bearish prices it at AU$27.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that HUB24's revenue growth is expected to slow, with the forecast 19% annualised growth rate until the end of 2025 being well below the historical 30% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.9% annually. So it's pretty clear that, while HUB24's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.