Adrad Holdings Limited (ASX:AHL) Just Reported Earnings, And Analysts Cut Their Target Price

Shareholders might have noticed that Adrad Holdings Limited (ASX:AHL) filed its yearly result this time last week. The early response was not positive, with shares down 2.7% to AU$0.90 in the past week. The results were positive, with revenue coming in at AU$143m, beating analyst expectations by 2.8%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Adrad Holdings

Taking into account the latest results, the current consensus from Adrad Holdings' twin analysts is for revenues of AU$153.0m in 2024. This would reflect a modest 7.1% increase on its revenue over the past 12 months. Before this earnings report, the analysts had been forecasting revenues of AU$150.9m and earnings per share (EPS) of AU$0.14 in 2024. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.

The average price target fell 10% to AU$1.48, withthe analysts clearly having become less optimistic about Adrad Holdings'prospects following its latest earnings.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Adrad Holdings' revenue growth is expected to slow, with the forecast 7.1% annualised growth rate until the end of 2024 being well below the historical 15% growth over the last year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. Factoring in the forecast slowdown in growth, it seems obvious that Adrad Holdings is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Adrad Holdings' 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.

We have estimates for Adrad Holdings from its twin analysts out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Adrad Holdings that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.