As you might know, Nanofilm Technologies International Limited (SGX:MZH) last week released its latest full-year, and things did not turn out so great for shareholders. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at S$237m, statutory earnings missed forecasts by 17%, coming in at just S$0.066 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Nanofilm Technologies International
Taking into account the latest results, the current consensus from Nanofilm Technologies International's eight analysts is for revenues of S$265.6m in 2023, which would reflect a decent 12% increase on its sales over the past 12 months. Statutory earnings per share are predicted to step up 17% to S$0.078. In the lead-up to this report, the analysts had been modelling revenues of S$298.0m and earnings per share (EPS) of S$0.098 in 2023. Indeed, we can see that the analysts are a lot more bearish about Nanofilm Technologies International's prospects following the latest results, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.
The consensus price target fell 17% to S$1.40, with the weaker earnings outlook clearly leading valuation estimates. 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. Currently, the most bullish analyst values Nanofilm Technologies International at S$2.20 per share, while the most bearish prices it at S$1.20. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Nanofilm Technologies International's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 12% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. Compare this to the 9 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 11% per year. So it's pretty clear that, while Nanofilm Technologies International's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Nanofilm Technologies International analysts - going out to 2025, and you can see them free on our platform here.
Even so, be aware that Nanofilm Technologies International is showing 1 warning sign in our investment analysis , you should know about...
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