TransAct Technologies Incorporated (NASDAQ:TACT) Just Reported Earnings, And Analysts Cut Their Target Price

TransAct Technologies Incorporated (NASDAQ:TACT) shareholders are probably feeling a little disappointed, since its shares fell 2.9% to US$4.35 in the week after its latest third-quarter results. Results were overall in line with expectations, with the company breaking even at the statutory earnings per share (EPS) level on US$13m in revenue. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on TransAct Technologies after the latest results.

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Taking into account the latest results, the consensus forecast from TransAct Technologies' sole analyst is for revenues of US$54.9m in 2026. This reflects a solid 9.2% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 94% to US$0.05. Before this earnings announcement, the analyst had been modelling revenues of US$55.7m and losses of US$0.07 per share in 2026. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analyst upgrading their numbers and making a considerable decrease in losses per share in particular.

Check out our latest analysis for TransAct Technologies

Even with the lower forecast losses, the analyst lowered their valuations, with the average price target falling 26% to US$5.00. It looks likethe analyst has become less optimistic about the overall business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that TransAct Technologies' revenue growth is expected to slow, with the forecast 7.3% annualised growth rate until the end of 2026 being well below the historical 9.4% p.a. growth over the last five years. Compare this to the 45 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.8% per year. Factoring in the forecast slowdown in growth, it looks like TransAct Technologies is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analyst reconfirmed their loss per share estimates for next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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.

However, before you get too enthused, we've discovered 2 warning signs for TransAct Technologies that you should be aware 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.