The quarterly results for NanoXplore, Inc. (CVE:GRA) were released last week, making it a good time to revisit its performance. The result was fairly weak overall, with revenues of CA$15m being 3.5% less than what the analysts had been modelling. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for NanoXplore from four analysts is for revenues of CA$82.4m in 2021 which, if met, would be a solid 9.3% increase on its sales over the past 12 months. Before this earnings result, the analysts had predicted CA$100.4m revenue in 2021, although there was no accompanying EPS estimate. The consensus view seems to have become more pessimistic on NanoXplore, noting the real cut to revenue estimates following last week's results.
The average price target fell 8.3% to CA$2.78, withthe analysts clearly having become less optimistic about NanoXplore'sprospects following its latest earnings. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic NanoXplore analyst has a price target of CA$3.85 per share, while the most pessimistic values it at CA$2.25. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the NanoXplore's past performance and to peers in the same industry. It's pretty clear that there is an expectation that NanoXplore's revenue growth will slow down substantially, with revenues next year expected to grow 9.3%, compared to a historical growth rate of 73% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.6% next year. Even after the forecast slowdown in growth, it seems obvious that NanoXplore is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their revenue estimates for next year. They also downgraded their revenue estimates, although industry data suggests that NanoXplore's revenues are expected to grow faster 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 NanoXplore's future valuation.
At least one of NanoXplore's four analysts has provided estimates out to 2023, which can be seen for free on our platform here.
And what about risks? Every company has them, and we've spotted 3 warning signs for NanoXplore (of which 1 shouldn't be ignored!) you should know about.
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This article by Simply Wall St is general in nature. 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. Thank you for reading.