HMC Capital's (ASX:HMC) fiscal first-half results earnings and revenue were strong, likely to satisfy current shareholders, but potential investors may require further proof that the growth initiatives are driving sustainable earnings, according to a Tuesday note by Jarden Research.

The company reported Monday that its earnings per diluted share in the fiscal first half rose to AU$0.426, from AU$0.051 per diluted share a year earlier and in line with Jarden's forecasts.

Analysts polled by FactSet were expecting EPS of AU$0.36.

Jarden believes that higher fund management fees and lower taxes offset reduced investment income and higher overheads.

Revenue for the six months ended Dec. 31, 2024, was AU$127.3 million, up from AU$40.2 million in the same period a year earlier. Analysts surveyed by FactSet expected sales of AU$128 million.

Jarden Research has an underweight rating on HMC and a price target of AU$9.65.

Shares of the firm fell 4% at market close.