Analysts Have Been Trimming Their Adrad Holdings Limited (ASX:AHL) Price Target After Its Latest Report
Adrad Holdings Limited (ASX:AHL) shareholders are probably feeling a little disappointed, since its shares fell 2.7% to AU$0.90 in the week after its latest annual results. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 2.8%to hit AU$143m. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for Adrad Holdings
Taking into account the latest results, the most recent consensus for Adrad Holdings from two analysts is for revenues of AU$153.0m in 2024. If met, it would imply a satisfactory 7.1% increase on its revenue over the past 12 months. In the lead-up to this report, the analysts had been modelling revenues of AU$150.9m and earnings per share (EPS) of AU$0.14 in 2024. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.
Intriguingly,the analysts have cut their price target 10% to AU$1.48 showing a clear decline in sentiment around Adrad Holdings' valuation.
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. It's pretty clear that there is an expectation that Adrad Holdings' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 7.1% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Adrad Holdings.
The Bottom Line
The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Adrad Holdings' revenue 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 Adrad Holdings' future valuation.
We have estimates for Adrad Holdings from its two analysts out to 2026, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Adrad Holdings .
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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.
