In This Article:
Shimmick Corporation (NASDAQ:SHIM) just released its third-quarter report and things are looking bullish. The results were impressive, with revenues of US$166m exceeding analyst forecasts by 38%, and statutory losses of US$0.05 were likewise much smaller than the analysts had forecast. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for Shimmick
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. Before this latest report, the consensus had been expecting revenues of US$484.9m and US$0.45 per share in losses. 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.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Shimmick's past performance and to peers in the same industry. 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 By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 8.6% per year. So while a broad number of companies are forecast to grow, unfortunately Shimmick is expected to see its revenue affected worse than other companies in the 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. 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.