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Mach7 Technologies Limited (ASX:M7T) shareholders are probably feeling a little disappointed, since its shares fell 8.6% to AU$0.53 in the week after its latest yearly results. Revenues were a bright spot, with AU$30m in revenue arriving 5.0% ahead of expectations, although statutory earnings didn't fare nearly so well, recording a loss of AU$0.033, some 7.9% below consensus predictions. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for Mach7 Technologies
Taking into account the latest results, the consensus forecast from Mach7 Technologies' four analysts is for revenues of AU$35.1m in 2025. This reflects a notable 17% improvement in revenue compared to the last 12 months. Losses are expected to be contained, narrowing 15% from last year to AU$0.028. Yet prior to the latest earnings, the analysts had been forecasting revenues of AU$38.3m and losses of AU$0.0049 per share in 2025. So it's pretty clear the analysts have mixed opinions on Mach7 Technologies after this update; revenues were downgraded and per-share losses expected to increase.
The consensus price target fell 8.0% to AU$1.13, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. 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 Mach7 Technologies at AU$1.36 per share, while the most bearish prices it at AU$0.95. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Mach7 Technologies' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Mach7 Technologies'historical trends, as the 17% annualised revenue growth to the end of 2025 is roughly in line with the 17% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 18% per year. It's clear that while Mach7 Technologies' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.