Last week, you might have seen that Hipages Group Holdings Limited (ASX:HPG) released its half-yearly result to the market. The early response was not positive, with shares down 9.4% to AU$2.42 in the past week. Revenues of AU$30m arrived in line with expectations, although statutory losses per share were AU$0.0064, an impressive 36% smaller than what broker models predicted. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Hipages Group Holdings  earnings-and-revenue-growth

Taking into account the latest results, the consensus forecast from Hipages Group Holdings' four analysts is for revenues of AU$63.8m in 2022, which would reflect a notable 8.1% improvement in sales compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 72% to AU$0.0025. Before this latest report, the consensus had been expecting revenues of AU$64.3m and AU$0.00067 per share in losses. So it's pretty clear the analysts have mixed opinions on Hipages Group Holdings even after this update; although they reconfirmed their revenue numbers, it came at the cost of a regrettable increase in per-share losses.

With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 13% to AU$3.72, with the analysts signalling that growing losses would be a definite concern. 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. There are some variant perceptions on Hipages Group Holdings, with the most bullish analyst valuing it at AU$4.46 and the most bearish at AU$3.30 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Hipages Group Holdings shareholders.



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 can infer from the latest estimates that forecasts expect a continuation of Hipages Group Holdings'historical trends, as the 17% annualised revenue growth to the end of 2022 is roughly in line with the 15% annual revenue growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 9.2% annually. So although Hipages Group Holdings is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than 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 Hipages Group Holdings' 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 Hipages Group Holdings going out to 2024, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted  1 warning sign for Hipages Group Holdings  you should know about.

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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.