Haleon plc (LON:HLN) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues UK£2.8b disappointed slightly, at2.5% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of UK£0.053 coming in 12% above what was anticipated. 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. Readers will be glad to know we’ve aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Haleon after the latest results.
View our latest analysis for Haleon
Taking into account the latest results, the most recent consensus for Haleon from 16 analysts is for revenues of UK£11.5b in 2025. If met, it would imply a credible 2.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 39% to UK£0.19. Before this earnings report, the analysts had been forecasting revenues of UK£11.5b and earnings per share (EPS) of UK£0.18 in 2025. So it’s pretty clear that, although the analysts have updated their estimates, there’s been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at UK£3.93. 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 Haleon analyst has a price target of UK£4.54 per share, while the most pessimistic values it at UK£3.00. This shows there is still a bit of diversity in estimates, but analysts don’t appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Haleon’s past performance and to peers in the same industry. We would highlight that Haleon’s revenue growth is expected to slow, with the forecast 1.7% annualised growth rate until the end of 2025 being well below the historical 5.7% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.2% annually. Factoring in the forecast slowdown in growth, it seems obvious that Haleon is also expected to grow slower than other industry participants.
