Analysts Have Lowered Expectations For Seeing Machines Limited (LON:SEE) After Its Latest Results

It's been a sad week for Seeing Machines Limited (LON:SEE), who've watched their investment drop 10% to UK£0.039 in the week since the company reported its annual result. Revenues were in line with expectations, at US$68m, while statutory losses ballooned to US$0.0076 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Seeing Machines

Following the latest results, Seeing Machines' dual analysts are now forecasting revenues of US$71.0m in 2025. This would be an okay 5.0% improvement in revenue compared to the last 12 months. Per-share losses are expected to explode, reaching US$0.50 per share. Before this latest report, the consensus had been expecting revenues of US$77.7m and US$0.0013 per share in losses. So it's pretty clear the analysts have mixed opinions on Seeing Machines after this update; revenues were downgraded and per-share losses expected to increase.

The average price target fell 13% to UK£0.092, implicitly signalling that lower earnings per share are a leading indicator for Seeing Machines' valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Seeing Machines' revenue growth is expected to slow, with the forecast 5.0% annualised growth rate until the end of 2025 being well below the historical 22% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.8% annually. So it's pretty clear that, while Seeing Machines' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Seeing Machines. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 Seeing Machines going out as far as 2027, and you can see them free on our platform here.

You can also view our analysis of Seeing Machines' balance sheet, and whether we think Seeing Machines 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.