Analysts Have Made A Financial Statement On AFT Pharmaceuticals Limited's (NZSE:AFT) Annual Report

The analysts might have been a bit too bullish on AFT Pharmaceuticals Limited (NZSE:AFT), given that the company fell short of expectations when it released its annual results last week. AFT Pharmaceuticals missed analyst forecasts, with revenues of NZ$208m and statutory earnings per share (EPS) of NZ$0.11, falling short by 3.2% and 3.3% respectively. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus from AFT Pharmaceuticals' two analysts is for revenues of NZ$245.5m in 2026. This would reflect a solid 18% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 36% to NZ$0.16. In the lead-up to this report, the analysts had been modelling revenues of NZ$255.9m and earnings per share (EPS) of NZ$0.18 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

See our latest analysis for AFT Pharmaceuticals

The analysts made no major changes to their price target of NZ$3.70, suggesting the downgrades are not expected to have a long-term impact on AFT Pharmaceuticals' valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 18% growth on an annualised basis. That is in line with its 16% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 30% per year. So it's pretty clear that AFT Pharmaceuticals is expected to grow slower than similar companies in the same 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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. 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. We have analyst estimates for AFT Pharmaceuticals going out as far as 2028, 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.