AFT Pharmaceuticals Limited (NZSE:AFT) Just Released Its Yearly Results And Analysts Are Updating Their Estimates

Investors in AFT Pharmaceuticals Limited (NZSE:AFT) had a good week, as its shares rose 2.1% to close at NZ$2.91 following the release of its annual results. AFT Pharmaceuticals reported NZ$195m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of NZ$0.15 beat expectations, being 3.4% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for AFT Pharmaceuticals

Taking into account the latest results, the current consensus from AFT Pharmaceuticals' three analysts is for revenues of NZ$223.6m in 2025. This would reflect a meaningful 14% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 7.7% to NZ$0.16. In the lead-up to this report, the analysts had been modelling revenues of NZ$220.2m and earnings per share (EPS) of NZ$0.17 in 2025. 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 NZ$3.75, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values AFT Pharmaceuticals at NZ$4.60 per share, while the most bearish prices it at NZ$2.90. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await AFT Pharmaceuticals shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the AFT Pharmaceuticals' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of AFT Pharmaceuticals'historical trends, as the 14% annualised revenue growth to the end of 2025 is roughly in line with the 15% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 44% annually. So although AFT Pharmaceuticals is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for AFT Pharmaceuticals. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that AFT Pharmaceuticals' revenue is expected to perform worse than the wider industry. The consensus price target held steady at NZ$3.75, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on AFT Pharmaceuticals. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple AFT Pharmaceuticals analysts - going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether AFT Pharmaceuticals' debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.