Zotefoams plc Just Missed EPS By 6.4%: Here's What Analysts Think Will Happen Next

It's been a good week for Zotefoams plc (LON:ZTF) shareholders, because the company has just released its latest full-year results, and the shares gained 2.4% to UK£3.48. It looks like the results were a bit of a negative overall. While revenues of UK£127m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 6.4% to hit UK£0.19 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Zotefoams

Taking into account the latest results, the current consensus from Zotefoams' two analysts is for revenues of UK£138.4m in 2024. This would reflect a decent 9.0% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 17% to UK£0.22. Before this earnings report, the analysts had been forecasting revenues of UK£138.9m and earnings per share (EPS) of UK£0.23 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

The consensus price target held steady at UK£4.60, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Zotefoams' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 9.0% growth on an annualised basis. This is compared to a historical growth rate of 12% 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 revenue shrink 3.5% per year. So it's clear that despite the slowdown in growth, Zotefoams is still expected to grow meaningfully 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 estimates, suggesting that it's tracking in line with expectations. Their estimates also suggest that Zotefoams' revenue is expected to perform better than the wider industry. The consensus price target held steady at UK£4.60, with the latest estimates not enough to have an impact on their price targets.

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 analyst estimates for Zotefoams going out as far as 2026, and you can see them free on our platform here.

You can also view our analysis of Zotefoams' balance sheet, and whether we think Zotefoams is carrying too much debt, for free on our platform here.

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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.