Sono-Tek Corporation Just Beat EPS By 60%: Here's What Analysts Think Will Happen Next

As you might know, Sono-Tek Corporation (NASDAQ:SOTK) just kicked off its latest third-quarter results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 3.8% to hit US$5.7m. Sono-Tek also reported a statutory profit of US$0.04, which was an impressive 60% above what 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Sono-Tek

Taking into account the latest results, the consensus forecast from Sono-Tek's two analysts is for revenues of US$22.7m in 2025. This reflects a sizeable 22% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 23% to US$0.10. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$22.6m and earnings per share (EPS) of US$0.10 in 2025. So the consensus seems to have become somewhat more optimistic on Sono-Tek's earnings potential following these results.

There's been no major changes to the consensus price target of US$9.88, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Sono-Tek's growth to accelerate, with the forecast 17% annualised growth to the end of 2025 ranking favourably alongside historical growth of 6.8% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sono-Tek to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Sono-Tek's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Even so, be aware that Sono-Tek is showing 3 warning signs in our investment analysis , and 1 of those is a bit unpleasant...

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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.