Kraken Robotics Inc. (CVE:PNG) Released Earnings Last Week And Analysts Lifted Their Price Target To CA$4.25

Kraken Robotics Inc. (CVE:PNG) shareholders are probably feeling a little disappointed, since its shares fell 8.2% to CA$3.46 in the week after its latest second-quarter results. Revenues beat expectations, coming in 6.6% ahead of forecasts, and the company broke even on a statutory earnings per share (EPS) level. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the most recent consensus for Kraken Robotics from seven analysts is for revenues of CA$123.0m in 2025. If met, it would imply a major 36% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to decline 14% to CA$0.042 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$123.8m and earnings per share (EPS) of CA$0.058 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.

See our latest analysis for Kraken Robotics

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 5.3% to CA$4.25, suggesting the revised estimates are not indicative of a weaker long-term future for the business. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Kraken Robotics analyst has a price target of CA$5.00 per share, while the most pessimistic values it at CA$3.25. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Kraken Robotics' growth to accelerate, with the forecast 86% annualised growth to the end of 2025 ranking favourably alongside historical growth of 40% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Kraken Robotics to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Kraken Robotics analysts - going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for Kraken Robotics (2 are a bit concerning!) 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.