Earnings Update: Here's Why Analysts Just Lifted Their HashiCorp, Inc. (NASDAQ:HCP) Price Target To US$27.14
It's been a good week for HashiCorp, Inc. (NASDAQ:HCP) shareholders, because the company has just released its latest annual results, and the shares gained 2.7% to US$26.58. The results look positive overall; while revenues of US$583m were in line with analyst predictions, statutory losses were 5.6% smaller than expected, with HashiCorp losing US$0.98 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
View our latest analysis for HashiCorp
Taking into account the latest results, the current consensus from HashiCorp's 18 analysts is for revenues of US$645.8m in 2025. This would reflect a notable 11% increase on its revenue over the past 12 months. Losses are expected to be contained, narrowing 16% from last year to US$0.80. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$656.7m and losses of US$0.73 per share in 2025. Overall it looks as though the analysts were a bit mixed on the latest consensus updates. Although revenue forecasts held steady, the consensus also made a pronounced increase to its losses per share forecasts.
Despite expectations of heavier losses next year,the analysts have lifted their price target 5.2% to US$27.14, perhaps implying these losses are not expected to be recurring over the long term. 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. The most optimistic HashiCorp analyst has a price target of US$38.00 per share, while the most pessimistic values it at US$21.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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 HashiCorp's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2025 being well below the historical 34% p.a. growth over the last three years. Compare this to the 436 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 12% per year. Factoring in the forecast slowdown in growth, it looks like HashiCorp is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at HashiCorp. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
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. At Simply Wall St, we have a full range of analyst estimates for HashiCorp going out to 2027, and you can see them free on our platform here..
Plus, you should also learn about the 2 warning signs we've spotted with HashiCorp .
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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.
