US$18.50: That's What Analysts Think Enovix Corporation (NASDAQ:ENVX) Is Worth After Its Latest Results

As you might know, Enovix Corporation (NASDAQ:ENVX) just kicked off its latest first-quarter results with some very strong numbers. Results overall were solid, with revenues arriving 10.0% better than analyst forecasts at US$5.1m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.12 per share, were 10.0% smaller than the analysts expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

We've discovered 2 warning signs about Enovix. View them for free.

Taking into account the latest results, the consensus forecast from Enovix's nine analysts is for revenues of US$36.9m in 2025. This reflects a major 61% improvement in revenue compared to the last 12 months. Losses are supposed to decline, shrinking 17% from last year to US$0.87. Before this latest report, the consensus had been expecting revenues of US$35.5m and US$0.93 per share in losses. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for both revenues and losses per share.

View our latest analysis for Enovix

Yet despite these upgrades, the analysts cut their price target 30% to US$18.50, implicitly signalling that the ongoing losses are likely to weigh negatively on Enovix's valuation. 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. The most optimistic Enovix analyst has a price target of US$36.00 per share, while the most pessimistic values it at US$9.00. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 89% growth on an annualised basis. That is in line with its 76% annual 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 8.1% per year. So although Enovix is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Enovix analysts - going out to 2027, 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 Enovix 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.