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It's been a sad week for Electro Optic Systems Holdings Limited (ASX:EOS), who've watched their investment drop 11% to AU$1.51 in the week since the company reported its half-year result. Revenues came in at AU$143m, an impressive 35% ahead of analyst forecasts. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Electro Optic Systems Holdings
Following the recent earnings report, the consensus from seven analysts covering Electro Optic Systems Holdings is for revenues of AU$253.2m in 2024. This implies an uneasy 12% decline in revenue compared to the last 12 months. Losses are forecast to balloon 405% to AU$0.11 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of AU$242.6m and losses of AU$0.11 per share in 2024.
The consensus price target held steady at AU$1.81despite the upgrade to revenue forecasts and ongoing losses. The analysts seems to think the business is otherwise performing roughly in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Electro Optic Systems Holdings at AU$2.80 per share, while the most bearish prices it at AU$0.79. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Electro Optic Systems Holdings' past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 23% annualised decline to the end of 2024. That is a notable change from historical growth of 7.9% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 7.0% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Electro Optic Systems Holdings is expected to lag the wider industry.