Tower Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Tower Limited (NZSE:TWR) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Tower beat revenue expectations by 3.3%, at NZ$616m. Statutory earnings per share (EPS) came in at NZ$0.23, some 9.1% short of analyst estimates. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following the latest results, Tower's two analysts are now forecasting revenues of NZ$635.9m in 2026. This would be an okay 3.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to dive 30% to NZ$0.17 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of NZ$612.5m and earnings per share (EPS) of NZ$0.17 in 2026. There doesn't appear to have been a major change in sentiment following the results, other than the small increase to revenue estimates.

Check out our latest analysis for Tower

The analysts increased their price target 12% to NZ$2.13, perhaps signalling that higher revenues are a strong leading indicator for Tower's valuation.

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 Tower's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 3.2% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 0.07% annually. Even after the forecast slowdown in growth, it seems obvious that Tower is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. 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 Tower (1 is potentially serious!) 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.