The analysts covering Hongkong Land Holdings Limited (SGX:H78) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

After the downgrade, the consensus from Hongkong Land Holdings' eleven analysts is for revenues of US$2.0b in 2024, which would reflect a small 4.7% decline in sales compared to the last year of performance. Prior to the latest estimates, the analysts were forecasting revenues of US$1.9b in 2024. It looks like there's been a clear increase in sentiment after the latest consensus updates, given the small lift in revenue estimates.

See our latest analysis for Hongkong Land Holdings

We'd point out that there was no major changes to their price target of US$3.57, suggesting the latest estimates were not enough to shift their view on the value of the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. Over the past five years, revenues have declined around 1.5% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 9.1% decline in revenue until the end of 2024. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 1.5% per year. So while a broad number of companies are forecast to grow, unfortunately Hongkong Land Holdings is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Hongkong Land Holdings this year. They also expect company revenue to perform worse than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Hongkong Land Holdings after today.

Want to learn more? At least one of Hongkong Land Holdings' eleven analysts has provided estimates out to 2026, which can be seen for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.

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