There’s been a notable change in appetite for AstroNova, Inc. (NASDAQ:ALOT) shares in the week since its annual report, with the stock down 11% to US$9.70. It was an okay result overall, with revenues coming in at US$133m, roughly what analysts had been expecting. This is an important time for investors, as they can track a company’s performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we’ve aggregated the latest statutory forecasts to see whether analysts have changed their mind on AstroNova after the latest results.
Taking into account the latest results, the current consensus, from the only analyst covering AstroNova, is for revenues of US$124.9m in 2021, which would reflect a noticeable 6.4% reduction in AstroNova’s sales over the past 12 months. Before this earnings result, analysts had predicted US$133.2m revenue in 2021, although there was no accompanying EPS estimate. It looks like analysts have become a bit less bullish on AstroNova, given the revenue estimates after the latest results.
The consensus price target on AstroNova is US$26.00 per share. This is the first time in recent history that the analysts we track have assigned a price target to AstroNova, which could suggest a growing interest in the business among investors in the local market.
It can also be useful to step back and take a broader view of how analyst forecasts compare to AstroNova’s performance in recent years. We would highlight that sales are expected to reverse, with the forecast 6.4% revenue decline a notable change from historical growth of 11% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same market are forecast to see their revenue grow 6.0% annually for the foreseeable future. It’s pretty clear that AstroNova’s revenues are expected to perform substantially worse than the wider market.
The Bottom Line
Probably the biggest thing to take away from these latest forecasts is that brokers are definitely optimistic on the business, given the forecast for profitability next year. Unfortunately, analysts also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider market. Even so, earnings per share are more important to the intrinsic value of the business. We previously had no consensus price target, which could suggest the business has reached a point where analysts feel comfortably deriving a valuation for it.
We have estimates for AstroNova from one covering analyst, and you can see them free on our platform here.
You can also view our analysis of AstroNova’s balance sheet, and whether we think AstroNova is carrying too much debt, for free on our platform here.
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