Sono-Tek Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Sono-Tek Corporation (NASDAQ:SOTK) shareholders are probably feeling a little disappointed, since its shares fell 4.6% to US$4.15 in the week after its latest second-quarter results. Revenues were US$5.2m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$0.03 were also better than expected, beating analyst predictions by 20%. 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.

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Following last week's earnings report, Sono-Tek's twin analysts are forecasting 2026 revenues to be US$20.7m, approximately in line with the last 12 months. Per-share earnings are expected to rise 9.2% to US$0.10. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$20.2m and earnings per share (EPS) of US$0.085 in 2026. So it seems there's been a definite increase in optimism about Sono-Tek's future following the latest results, with a great increase in the earnings per share forecasts in particular.

Check out our latest analysis for Sono-Tek

Despite these upgrades, the consensus price target fell 6.1% to US$7.75, perhaps signalling that the uplift in performance is not expected to last.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Sono-Tek's revenue growth is expected to slow, with the forecast 0.4% annualised growth rate until the end of 2026 being well below the historical 6.8% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.7% annually. Factoring in the forecast slowdown in growth, it seems obvious that Sono-Tek is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Sono-Tek following these results. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Sono-Tek's future valuation.

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 least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

Even so, be aware that Sono-Tek is showing 2 warning signs in our investment analysis , and 1 of those doesn't sit too well with us...

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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.