Mach7 Technologies Limited (ASX:M7T) Just Reported And Analysts Have Been Cutting Their Estimates

Shareholders might have noticed that Mach7 Technologies Limited (ASX:M7T) filed its annual result this time last week. The early response was not positive, with shares down 8.6% to AU$0.53 in the past week. The results were mixed overall, with revenues slightly ahead of analyst estimates at AU$30m. Statutory losses by contrast were 7.9% larger than predictions at AU$0.033 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Mach7 Technologies

Taking into account the latest results, the most recent consensus for Mach7 Technologies from four analysts is for revenues of AU$35.1m in 2025. If met, it would imply a solid 17% increase on its revenue over the past 12 months. Losses are supposed to decline, shrinking 15% from last year to AU$0.028. Yet prior to the latest earnings, the analysts had been forecasting revenues of AU$38.3m and losses of AU$0.0049 per share in 2025. While this year's revenue estimates dropped there was also a massive increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The average price target fell 8.0% to AU$1.13, implicitly signalling that lower earnings per share are a leading indicator for Mach7 Technologies' valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Mach7 Technologies at AU$1.36 per share, while the most bearish prices it at AU$0.95. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Mach7 Technologies'historical trends, as the 17% annualised revenue growth to the end of 2025 is roughly in line with the 17% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 18% per year. It's clear that while Mach7 Technologies' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Mach7 Technologies. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Mach7 Technologies' future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Mach7 Technologies. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Mach7 Technologies analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Mach7 Technologies 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.