Seeing Machines Limited (LON:SEE) Consensus Forecasts Have Become A Little Darker Since Its Latest Report

It's been a good week for Seeing Machines Limited (LON:SEE) shareholders, because the company has just released its latest annual results, and the shares gained 2.6% to UK£0.027. Revenues were in line with expectations, at US$62m, while statutory losses ballooned to US$0.0055 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.

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Taking into account the latest results, the current consensus from Seeing Machines' twin analysts is for revenues of US$81.1m in 2026. This would reflect a sizeable 30% increase on its revenue over the past 12 months. Per-share statutory losses are expected to explode, reaching US$0.0016 per share. Before this earnings report, the analysts had been forecasting revenues of US$96.1m and earnings per share (EPS) of US$0.003 in 2026. There looks to have been a major change in sentiment regarding Seeing Machines' prospects following the latest results, with a real cut to revenues and the analysts now forecasting a loss instead of a profit.

See our latest analysis for Seeing Machines

The average price target was broadly unchanged at UK£0.063, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Seeing Machines' rate of growth is expected to accelerate meaningfully, with the forecast 30% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 18% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Seeing Machines is expected to grow much faster than its industry.

The Bottom Line

The biggest low-light for us was that the forecasts for Seeing Machines dropped from profits to a loss next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Seeing Machines that you should be aware 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.