Enovix Corporation (NASDAQ:ENVX) just released its quarterly report and things are looking bullish. Results overall were solid, with revenues arriving 5.0% better than analyst forecasts at US$4.3m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.13 per share, were 5.0% smaller than the analysts expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
After the latest results, the eleven analysts covering Enovix are now predicting revenues of US$46.1m in 2025. If met, this would reflect a major 122% improvement in revenue compared to the last 12 months. Losses are expected to be contained, narrowing 16% from last year to US$1.16. Before this latest report, the consensus had been expecting revenues of US$53.4m and US$1.14 per share in losses. So there's definitely been a change in sentiment in this update, with the analysts administering a substantial haircut to next year's revenue estimates, while at the same time holding losses per share steady.
There was no real change to the average price target of US$28.58, suggesting that the revisions to revenue estimates are not expected to have a long-term impact on Enovix's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Enovix analyst has a price target of US$100.00 per share, while the most pessimistic values it at US$14.00. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
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. We can infer from the latest estimates that forecasts expect a continuation of Enovix'shistorical trends, as the 89% annualised revenue growth to the end of 2025 is roughly in line with the 77% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 8.5% per year. So although Enovix is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. They also downgraded Enovix's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Enovix analysts - going out to 2026, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 4 warning signs for Enovix you should know about.
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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.
