Stock Analysis

Analysts Have Made A Financial Statement On Straker Limited's (ASX:STG) Full-Year Report

ASX:STG
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Straker Limited (ASX:STG) just released its latest yearly report and things are not looking great. It was a pretty negative result overall, with revenues of NZ$50m missing analyst predictions by 4.0%. Worse, the business reported a statutory loss of NZ$0.033 per share, much larger than the analyst had forecast prior to the result. This is an important time for investors, as they can track a company's performance in its report, look at what expert is 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 analyst is expecting for next year.

Check out our latest analysis for Straker

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ASX:STG Earnings and Revenue Growth May 31st 2024

After the latest results, the sole analyst covering Straker are now predicting revenues of NZ$52.5m in 2025. If met, this would reflect an okay 5.0% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 59% to NZ$0.014. Yet prior to the latest earnings, the analyst had been forecasting revenues of NZ$57.3m and losses of NZ$0.031 per share in 2025. Although the revenue estimate has fallen somewhat, Straker'sfuture looks a little different to the past, with a considerable decrease in the loss per share forecasts in particular.

There was no major change to the AU$0.89average price target, suggesting that the adjustments to revenue and earnings are not expected to have a long-term impact on the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Straker's revenue growth is expected to slow, with the forecast 5.0% annualised growth rate until the end of 2025 being well below the historical 19% p.a. growth over the last five years. Compare this to the 25 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.4% per year. Factoring in the forecast slowdown in growth, it looks like Straker is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analyst reconfirmed their loss per share estimates for next year. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Yet - earnings are more important to the intrinsic value of the business. The consensus price target held steady at AU$0.89, with the latest estimates not enough to have an impact on their price target.

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 analyst estimates for Straker going out as far as 2027, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Straker .

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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.