Investors in HKT Trust and HKT Limited (HKG:6823) had a good week, as its shares rose 3.3% to close at HK$9.43 following the release of its yearly results. HKT Trust and HKT reported in line with analyst predictions, delivering revenues of HK$34b and statutory earnings per share of HK$0.66, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Following last week's earnings report, HKT Trust and HKT's seven analysts are forecasting 2024 revenues to be HK$35.0b, approximately in line with the last 12 months. Statutory earnings per share are predicted to accumulate 6.1% to HK$0.70. In the lead-up to this report, the analysts had been modelling revenues of HK$35.6b and earnings per share (EPS) of HK$0.68 in 2024. So the consensus seems to have become somewhat more optimistic on HKT Trust and HKT's earnings potential following these results.

There's been no major changes to the consensus price target of HK$11.74, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 HKT Trust and HKT analyst has a price target of HK$13.00 per share, while the most pessimistic values it at HK$10.50. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting HKT Trust and HKT's growth to accelerate, with the forecast 1.8% annualised growth to the end of 2024 ranking favourably alongside historical growth of 0.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 4.6% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, HKT Trust and HKT is expected to grow slower than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards HKT Trust and HKT following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that HKT Trust and HKT's revenue is expected to perform worse than the wider industry. The consensus price target held steady at HK$11.74, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for HKT Trust and HKT going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for HKT Trust and HKT you should be aware of, and 1 of them is concerning.

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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.