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Shareholders might have noticed that Sono-Tek Corporation (NASDAQ:SOTK) filed its quarterly result this time last week. The early response was not positive, with shares down 5.5% to US$3.87 in the past week. It was a credible result overall, with revenues of US$5.2m and statutory earnings per share of US$0.02 both in line with analyst estimates, showing that Sono-Tek is executing in line with expectations. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for Sono-Tek
Taking into account the latest results, the current consensus from Sono-Tek's twin analysts is for revenues of US$22.4m in 2026. This would reflect a decent 11% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 50% to US$0.10. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$23.0m and earnings per share (EPS) of US$0.10 in 2026. If anything, the analysts look to have become slightly more optimistic overall; while they decreased their revenue forecasts, EPS predictions increased and ultimately earnings are more important.
The consensus price target fell 14% to US$8.25, with the analysts signalling that the weaker revenue outlook was a more powerful indicator than the upgraded EPS forecasts.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Sono-Tek's rate of growth is expected to accelerate meaningfully, with the forecast 8.8% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 6.4% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 7.5% per year. Sono-Tek is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Sono-Tek following these results. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Still, 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.