Accsys Technologies PLC (LON:AXS) Yearly Results: Here's What Analysts Are Forecasting For This Year

Investors in Accsys Technologies PLC (LON:AXS) had a good week, as its shares rose 3.5% to close at UK£1.72 following the release of its annual results. Revenues of €100m beat analyst forecasts by4.4%, while the business broke even in terms of statutory earnings per share (EPS). The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Accsys Technologies

Taking into account the latest results, the consensus forecast from Accsys Technologies' three analysts is for revenues of €112.0m in 2022, which would reflect a notable 12% improvement in sales compared to the last 12 months. Statutory earnings per share are forecast to crater 65% to €0.01 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €114.2m and earnings per share (EPS) of €0.012 in 2022. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

The consensus price target held steady at UK£1.76, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. There are some variant perceptions on Accsys Technologies, with the most bullish analyst valuing it at UK£1.85 and the most bearish at UK£1.63 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. We can infer from the latest estimates that forecasts expect a continuation of Accsys Technologies'historical trends, as the 12% annualised revenue growth to the end of 2022 is roughly in line with the 15% annual revenue growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.1% per year. So although Accsys Technologies is expected to maintain its revenue growth rate, it's definitely expected 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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. At Simply Wall St, we have a full range of analyst estimates for Accsys Technologies going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Accsys Technologies you should know about.

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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.
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