Analysts Are Upgrading Kraken Robotics Inc. (CVE:PNG) After Its Latest Results

It's been a pretty great week for Kraken Robotics Inc. (CVE:PNG) shareholders, with its shares surging 11% to CA$0.54 in the week since its latest quarterly results. It was a curious result overall, with revenues coming in 5.5% below what the analysts had expected, at CA$12m. The company 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 experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Kraken Robotics after the latest results.

View our latest analysis for Kraken Robotics

Taking into account the latest results, the most recent consensus for Kraken Robotics from dual analysts is for revenues of CA$56.1m in 2023 which, if met, would be a solid 19% increase on its sales over the past 12 months. Kraken Robotics is also expected to turn profitable, with statutory earnings of CA$0.03 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$49.8m and earnings per share (EPS) of CA$0.02 in 2023. There has definitely been an improvement in perception after these results, with the analysts noticeably increasing both their earnings and revenue estimates.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 9.7% to CA$0.85per share.

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. It's pretty clear that there is an expectation that Kraken Robotics' revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 15% growth on an annualised basis. This is compared to a historical growth rate of 42% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.1% annually. Even after the forecast slowdown in growth, it seems obvious that Kraken Robotics is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Kraken Robotics following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 2024, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Kraken Robotics that you need to be mindful 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.