Revenue Miss: Nanofilm Technologies International Limited Fell 8.3% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models

Nanofilm Technologies International Limited (SGX:MZH) just released its latest yearly report and things are not looking great. Results look to have been somewhat negative - revenue fell 8.3% short of analyst estimates at S$247m, and statutory earnings of S$0.094 per share missed forecasts by 3.3%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Nanofilm Technologies International

Following the latest results, Nanofilm Technologies International's nine analysts are now forecasting revenues of S$312.6m in 2022. This would be a substantial 27% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 25% to S$0.12. Before this earnings report, the analysts had been forecasting revenues of S$332.6m and earnings per share (EPS) of S$0.12 in 2022. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

The consensus price target fell 8.4% to S$3.52, with the weaker earnings outlook clearly leading valuation estimates. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Nanofilm Technologies International at S$4.80 per share, while the most bearish prices it at S$2.70. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Nanofilm Technologies International'shistorical trends, as the 27% annualised revenue growth to the end of 2022 is roughly in line with the 25% annual revenue growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 14% per year. So it's pretty clear that Nanofilm Technologies International is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Nanofilm Technologies International. They also downgraded their revenue estimates, although industry data suggests that Nanofilm Technologies International's revenues are expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Nanofilm Technologies International's future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Nanofilm Technologies International going out to 2024, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Nanofilm Technologies International (1 makes us a bit uncomfortable) 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.