Analysts Have Made A Financial Statement On XRF Scientific Limited's (ASX:XRF) Annual Report

Investors in XRF Scientific Limited (ASX:XRF) had a good week, as its shares rose 5.7% to close at AU$1.50 following the release of its annual results. XRF Scientific reported AU$60m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of AU$0.064 beat expectations, being 3.2% higher than what the analyst expected. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

View our latest analysis for XRF Scientific

Following the latest results, XRF Scientific's single analyst are now forecasting revenues of AU$66.4m in 2025. This would be a notable 10% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 13% to AU$0.072. Yet prior to the latest earnings, the analyst had been anticipated revenues of AU$64.5m and earnings per share (EPS) of AU$0.074 in 2025. So it's pretty clear consensus is mixed on XRF Scientific after the latest results; whilethe analyst lifted revenue numbers, they also administered a minor downgrade to per-share earnings expectations.

There's been no major changes to the price target of AU$1.62, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that XRF Scientific's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 10% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 53% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than XRF Scientific.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. The consensus price target held steady at AU$1.62, with the latest estimates not enough to have an impact on their price target.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

You can also see our analysis of XRF Scientific's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.