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It's been a good week for LiqTech International, Inc. (NASDAQ:LIQT) shareholders, because the company has just released its latest quarterly results, and the shares gained 6.5% to US$2.53. Revenues of US$4.5m fell short of estimates by 17%, but statutory losses were relatively mild, coming in 5.3% smaller than the analysts expected, at US$0.36 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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 LiqTech International
Taking into account the latest results, the current consensus from LiqTech International's twin analysts is for revenues of US$19.2m in 2024. This would reflect a meaningful 8.1% increase on its revenue over the past 12 months. Losses are supposed to decline, shrinking 14% from last year to US$1.36. Before this latest report, the consensus had been expecting revenues of US$21.1m and US$1.53 per share in losses. While the revenue estimates fell, sentiment seems to have improved, with the analysts making a notable improvement in losses per share in particular.
The analysts have cut their price target 17% to US$7.58per share, suggesting that the declining revenue was a more crucial indicator than the forecast reduction in losses.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the LiqTech International's past performance and to peers in the same industry. One thing stands out from these estimates, which is that LiqTech International is forecast to grow faster in the future than it has in the past, with revenues expected to display 17% annualised growth until the end of 2024. If achieved, this would be a much better result than the 13% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.3% annually. So it looks like LiqTech International is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. They also downgraded LiqTech International's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Yet - earnings are more important to the intrinsic value of the business. 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.