Analysts Have Made A Financial Statement On Saunders International Limited's (ASX:SND) Annual Report

It's been a good week for Saunders International Limited (ASX:SND) shareholders, because the company has just released its latest full-year results, and the shares gained 3.8% to AU$1.10. The results were positive, with revenue coming in at AU$130m, beating analyst expectations by 5.2%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Saunders International

Taking into account the latest results, the consensus forecast from Saunders International's three analysts is for revenues of AU$174.2m in 2023, which would reflect a substantial 34% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 46% to AU$0.09. Before this earnings report, the analysts had been forecasting revenues of AU$166.2m and earnings per share (EPS) of AU$0.094 in 2023. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a substantial to revenue, the consensus also made a small dip in its earnings per share forecasts.

There's been no major changes to the price target of AU$1.48, suggesting that the impact of higher forecast sales and lower earnings won't result in a meaningful change to the business' valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Saunders International, with the most bullish analyst valuing it at AU$1.55 and the most bearish at AU$1.40 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Saunders International is an easy business to forecast or the the analysts are all using similar assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Saunders International's growth to accelerate, with the forecast 34% annualised growth to the end of 2023 ranking favourably alongside historical growth of 15% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.4% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Saunders International to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Saunders International. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at AU$1.48, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Saunders International analysts - going out to 2025, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Saunders International that you should be aware 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.