Last week, you might have seen that Nanofilm Technologies International Limited (SGX:MZH) released its full-year result to the market. The early response was not positive, with shares down 5.3% to S$0.71 in the past week. Revenue of S$177m surpassed estimates by 3.5%, although statutory earnings per share missed badly, coming in 57% below expectations at S$0.0048 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Nanofilm Technologies International after the latest results.
Taking into account the latest results, the current consensus from Nanofilm Technologies International's seven analysts is for revenues of S$204.4m in 2024. This would reflect a decent 15% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 609% to S$0.034. Yet prior to the latest earnings, the analysts had been anticipated revenues of S$233.9m and earnings per share (EPS) of S$0.052 in 2024. Indeed, we can see that the analysts are a lot more bearish about Nanofilm Technologies International's prospects following the latest results, administering a real cut to revenue estimates and slashing their EPS estimates to boot.
The consensus price target fell 12% to S$0.75, with the weaker earnings outlook clearly leading valuation estimates. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Nanofilm Technologies International at S$1.00 per share, while the most bearish prices it at S$0.63. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Nanofilm Technologies International's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 7.3% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Nanofilm Technologies International to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Nanofilm Technologies International. 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 analysts seemingly not reassured by the latest results, leading to a lower estimate of Nanofilm Technologies International's future valuation.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Nanofilm Technologies International going out to 2026, and you can see them free on our platform here..
Plus, you should also learn about the 1 warning sign we've spotted with Nanofilm Technologies International .
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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.