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It's shaping up to be a tough period for Hudson Global, Inc. (NASDAQ:HSON), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. Results showed a clear earnings miss, with US$43m revenue coming in 9.4% lower than what the analystsexpected. Statutory earnings per share (EPS) of US$0.11 missed the mark badly, arriving some 76% below what was expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for Hudson Global
Taking into account the latest results, Hudson Global's dual analysts currently expect revenues in 2023 to be US$194.5m, approximately in line with the last 12 months. Statutory earnings per share are predicted to expand 16% to US$1.82. Before this earnings report, the analysts had been forecasting revenues of US$199.8m and earnings per share (EPS) of US$2.39 in 2023. The analysts seem less optimistic after the recent results, reducing their sales forecasts and making a large cut to earnings per share numbers.
The consensus price target fell 15% to US$36.50, with the weaker earnings outlook clearly leading valuation estimates.
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. It's pretty clear that there is an expectation that Hudson Global's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 1.7% growth on an annualised basis. This is compared to a historical growth rate of 26% 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 7.4% 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 Hudson Global.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Hudson Global. Unfortunately, they also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.