Hudson Global, Inc. (NASDAQ:HSON) shareholders are probably feeling a little disappointed, since its shares fell 3.0% to US$14.21 in the week after its latest third-quarter results. Revenues missed expectations, with revenue of US$37m falling 19% short of forecasts. Earnings correspondingly dipped, with Hudson Global reporting a statutory loss of US$0.28 per share, where the analyst was expecting a profit. The analyst 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. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

View our latest analysis for Hudson Global

Following the latest results, Hudson Global's solitary analyst are now forecasting revenues of US$156.3m in 2025. This would be a solid 11% improvement in revenue compared to the last 12 months. Hudson Global is also expected to turn profitable, with statutory earnings of US$0.63 per share. In the lead-up to this report, the analyst had been modelling revenues of US$191.3m and earnings per share (EPS) of US$1.96 in 2025. It looks like sentiment has declined substantially in the aftermath of these results, with a real cut to revenue estimates and a pretty serious reduction to earnings per share numbers as well.

The consensus price target fell 19% to US$22.00, with the weaker earnings outlook clearly leading valuation estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Hudson Global's past performance and to peers in the same industry. We would highlight that Hudson Global's revenue growth is expected to slow, with the forecast 8.9% annualised growth rate until the end of 2025 being well below the historical 12% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.9% annually. Even after the forecast slowdown in growth, it seems obvious that Hudson Global is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Hudson Global's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Hudson Global. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Hudson Global that you need to be mindful of.

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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.