Analyst Estimates: Here's What Brokers Think Of Kornit Digital Ltd. (NASDAQ:KRNT) After Its Second-Quarter Report

It's been a pretty great week for Kornit Digital Ltd. (NASDAQ:KRNT) shareholders, with its shares surging 15% to US$16.94 in the week since its latest second-quarter results. It was a respectable set of results; while revenues of US$49m were in line with analyst predictions, statutory losses were 20% smaller than expected, with Kornit Digital losing US$0.10 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Kornit Digital

Taking into account the latest results, the five analysts covering Kornit Digital provided consensus estimates of US$201.9m revenue in 2024, which would reflect a discernible 3.1% decline over the past 12 months. Losses are predicted to fall substantially, shrinking 68% to US$0.33. Before this earnings announcement, the analysts had been modelling revenues of US$205.4m and losses of US$0.35 per share in 2024. 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 losses per share, even though the revenue numbers were unchanged.

There's been no major changes to the consensus price target of US$23.20, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock'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. There are some variant perceptions on Kornit Digital, with the most bullish analyst valuing it at US$27.00 and the most bearish at US$20.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 6.0% annualised decline to the end of 2024. That is a notable change from historical growth of 6.8% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.2% annually for the foreseeable future. It's pretty clear that Kornit Digital's revenues are expected to perform substantially worse 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Kornit Digital's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$23.20, with the latest estimates not enough to have an impact on their price targets.

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. At Simply Wall St, we have a full range of analyst estimates for Kornit Digital going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Kornit Digital that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.