Allient Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Allient Inc. (NASDAQ:ALNT) shareholders are probably feeling a little disappointed, since its shares fell 2.1% to US$29.60 in the week after its latest first-quarter results. It looks like a credible result overall - although revenues of US$147m were what the analysts expected, Allient surprised by delivering a (statutory) profit of US$0.42 per share, an impressive 25% above what was forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Allient

Following last week's earnings report, Allient's three analysts are forecasting 2024 revenues to be US$569.9m, approximately in line with the last 12 months. Statutory per-share earnings are expected to be US$1.49, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$586.8m and earnings per share (EPS) of US$1.68 in 2024. 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.

The analysts made no major changes to their price target of US$39.33, suggesting the downgrades are not expected to have a long-term impact on Allient's valuation. 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. There are some variant perceptions on Allient, with the most bullish analyst valuing it at US$42.00 and the most bearish at US$35.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 2.3% by the end of 2024. This indicates a significant reduction from annual growth of 12% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 7.6% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Allient is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$39.33, 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 Allient. Long-term earnings power is much more important than next year's profits. We have forecasts for Allient going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for Allient 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.