Shimmick Corporation (NASDAQ:SHIM) defied analyst predictions to release its quarterly results, which were ahead of market expectations. Revenue crushed expectations at US$166m, beating expectations by 38%. Shimmick reported a statutory loss of US$0.05 per share, which - although not amazing - was much smaller than the analysts predicted. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 consensus from Shimmick's two analysts is for revenues of US$490.0m in 2025, which would reflect a small 4.8% decline in revenue compared to the last year of performance. Losses are predicted to fall substantially, shrinking 75% to US$0.76. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$484.9m and losses of US$0.45 per share in 2025. While next year's revenue estimates held steady, there was also a considerable increase to loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
The consensus price target fell 20% to US$3.00per share, with the analysts clearly concerned by ballooning losses.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would also point out that the forecast 3.9% annualised revenue decline to the end of 2025 is better than the historical trend, which saw revenues shrink 5.4% annually over the past three years Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 8.6% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Shimmick to suffer worse than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Shimmick's revenue is expected to perform worse 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 Shimmick's future valuation.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Shimmick going out as far as 2025, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 5 warning signs for Shimmick that you should be aware 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.
