Yahoo Finance Evertz Technologies Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
There's been a notable change in appetite for Evertz Technologies Limited (TSE:ET) shares in the week since its annual report, with the stock down 12% to CA$13.08. It looks like the results were a bit of a negative overall. While revenues of CA$515m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 6.2% to hit CA$0.91 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for Evertz Technologies
Following the latest results, Evertz Technologies' three analysts are now forecasting revenues of CA$531.0m in 2025. This would be a reasonable 3.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to reduce 4.5% to CA$0.88 in the same period. In the lead-up to this report, the analysts had been modelling revenues of CA$550.0m and earnings per share (EPS) of CA$1.07 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.
Despite the cuts to forecast earnings, there was no real change to the CA$17.17 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Evertz Technologies, with the most bullish analyst valuing it at CA$17.50 and the most bearish at CA$17.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 3.2% growth on an annualised basis. That is in line with its 3.8% annual growth 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 revenues grow 10% per year. So although Evertz Technologies is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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. The consensus price target held steady at CA$17.17, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Evertz Technologies going out to 2026, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Evertz Technologies that you need to take into consideration.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
