These Analysts Just Made An Downgrade To Their Amtech Systems, Inc. (NASDAQ:ASYS) EPS Forecasts

Today is shaping up negative for Amtech Systems, Inc. (NASDAQ:ASYS) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

After the downgrade, the consensus from Amtech Systems' three analysts is for revenues of US$92m in 2022, which would reflect a definite 11% decline in sales compared to the last year of performance. After this downgrade, the company is anticipated to report a loss of US$0.18 in 2022, a sharp decline from a profit over the last year. Prior to this update, the analysts had been forecasting revenues of US$112m and earnings per share (EPS) of US$0.35 in 2022. So we can see that the consensus has become notably more bearish on Amtech Systems' outlook with these numbers, making a substantial drop in this year's revenue estimates. Furthermore, they expect the business to be loss-making this year, compared to their previous forecasts of a profit.

See our latest analysis for Amtech Systems

Of course, another way to look at these forecasts is to place them into context against the industry itself. One more thing stood out to us about these estimates, and it's the idea that Amtech Systems' decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 21% to the end of 2022. This tops off a historical decline of 13% a year 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 revenue grow 9.3% per year. So while a broad number of companies are forecast to grow, unfortunately Amtech Systems is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The biggest low-light for us was that the forecasts for Amtech Systems dropped from profits to a loss this year. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Amtech Systems' revenues are expected to grow slower than the wider market. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on Amtech Systems, and a few readers might choose to steer clear of the stock.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Amtech Systems, including concerns around earnings quality. For more information, you can click here to discover this and the 1 other risk we've identified.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.