Earnings Update: Intevac, Inc. (NASDAQ:IVAC) Just Reported And Analysts Are Trimming Their Forecasts

As you might know, Intevac, Inc. (NASDAQ:IVAC) just kicked off its latest second-quarter results with some very strong numbers. The results were impressive, with revenues of US$15m exceeding analyst forecasts by 78%, and statutory losses of US$0.12 were likewise much smaller than the analysts had forecast. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Intevac

Taking into account the latest results, the two analysts covering Intevac provided consensus estimates of US$48.0m revenue in 2024, which would reflect an uncomfortable 13% decline over the past 12 months. Per-share losses are expected to explode, reaching US$0.52 per share. Before this earnings announcement, the analysts had been modelling revenues of US$52.7m and losses of US$0.46 per share in 2024. So it's pretty clear the analysts have mixed opinions on Intevac after this update; revenues were downgraded and per-share losses expected to increase.

There was no major change to the consensus price target of US$7.00, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would also point out that the forecast 24% annualised revenue decline to the end of 2024 is roughly in line with the historical trend, which saw revenues shrink 22% annually 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 7.7% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Intevac to suffer worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Intevac that you need to be mindful 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.