Yahoo Finance Halma plc (LON:HLMA) Yearly Results Just Came Out: Here's What Analysts Are Forecasting For This Year
Halma plc (LON:HLMA) defied analyst predictions to release its yearly results, which were ahead of market expectations. The company beat expectations with revenues of UK£2.0b arriving 2.5% ahead of forecasts. Statutory earnings per share (EPS) were UK£0.71, 2.4% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Halma
Following the latest results, Halma's twelve analysts are now forecasting revenues of UK£2.13b in 2025. This would be an okay 4.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 10% to UK£0.78. In the lead-up to this report, the analysts had been modelling revenues of UK£2.11b and earnings per share (EPS) of UK£0.76 in 2025. So the consensus seems to have become somewhat more optimistic on Halma's earnings potential following these results.
The consensus price target was unchanged at UK£24.23, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Halma analyst has a price target of UK£29.50 per share, while the most pessimistic values it at UK£19.50. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
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. We would highlight that Halma's revenue growth is expected to slow, with the forecast 4.9% annualised growth rate until the end of 2025 being well below the historical 11% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.7% annually. Factoring in the forecast slowdown in growth, it looks like Halma is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Halma's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Halma. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Halma going out to 2027, and you can see them free on our platform here..
You can also view our analysis of Halma's balance sheet, and whether we think Halma is carrying too much debt, for free on our platform here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
