Stock Analysis

Amino Technologies plc Just Missed Earnings - But Analysts Have Updated Their Models

AIM:AFRN
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As you might know, Amino Technologies plc (LON:AMO) recently reported its full-year numbers. It looks like a pretty bad result, all things considered. Although revenues of US$83m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 30% to hit US$0.039 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Amino Technologies after the latest results.

See our latest analysis for Amino Technologies

earnings-and-revenue-growth
AIM:AMO Earnings and Revenue Growth February 12th 2021

Taking into account the latest results, Amino Technologies' twin analysts currently expect revenues in 2021 to be US$83.4m, approximately in line with the last 12 months. Per-share earnings are expected to leap 84% to US$0.075. Before this earnings report, the analysts had been forecasting revenues of US$85.9m and earnings per share (EPS) of US$0.079 in 2021. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

The average price target climbed 35% to UK£2.15despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. From these estimates it looks as though the analysts expect the years of declining sales to come to an end, given the flat revenue forecast for next year. That would be a definite improvement, given that the past five years have seen sales shrink five years annually. Compare this against analyst estimates for the wider industry, which suggest that (in aggregate) industry revenues are expected to grow 3.0% next year. So it's pretty clear that, although revenues are improving, Amino Technologies is still expected to grow slower than the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Amino Technologies. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Amino Technologies. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Amino Technologies going out as far as 2022, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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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