There's been a notable change in appetite for Firan Technology Group Corporation (TSE:FTG) shares in the week since its second-quarter report, with the stock down 11% to CA$2.77. Revenues of CA$20m beat analyst forecasts by3.7%, while the business broke even in terms of statutory earnings per share (EPS). 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.
Following last week's earnings report, Firan Technology Group's one analyst are forecasting 2021 revenues to be CA$90.8m, approximately in line with the last 12 months. Statutory earnings per share are forecast to plunge 48% to CA$0.08 in the same period. In the lead-up to this report, the analyst had been modelling revenues of CA$90.8m and earnings per share (EPS) of CA$0.08 in 2021. So it's pretty clear that, although the analyst has updated their estimates, there's been no major change in expectations for the business following the latest results.
With no major changes to earnings forecasts, the consensus price target fell 13% to CA$3.50, suggesting that the analyst might have previously been hoping for an earnings upgrade.
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. It's pretty clear that there is an expectation that Firan Technology Group's revenue growth will slow down substantially, with revenues to the end of 2021 expected to display 0.9% growth on an annualised basis. This is compared to a historical growth rate of 3.8% 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 11% 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 Firan Technology Group.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analyst reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Firan Technology Group's revenues are expected to perform worse than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Firan Technology Group's future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on Firan Technology Group. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Firan Technology Group going out as far as 2022, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with Firan Technology Group .
If you’re looking to trade a wide range of investments, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted
This article by Simply Wall St is general in nature. 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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.