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AstroNova, Inc. (NASDAQ:ALOT) Just Reported First-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

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The first-quarter results for AstroNova, Inc. (NASDAQ:ALOT) were released last week, making it a good time to revisit its performance. The results were positive, with revenue coming in at US$31m, beating analyst expectations by 3.9%. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

View our latest analysis for AstroNova

NasdaqGM:ALOT Past and Future Earnings June 14th 2020
NasdaqGM:ALOT Past and Future Earnings June 14th 2020

Taking into account the latest results, the current consensus, from the single analyst covering AstroNova, is for revenues of US$118.1m in 2021, which would reflect a perceptible 7.9% reduction in AstroNova's sales over the past 12 months. Before this earnings result, the analyst had predicted US$124.9m revenue in 2021, although there was no accompanying EPS estimate. It looks like the analyst has become a bit less bullish on AstroNova, given the revenue estimates after the latest results.

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. These estimates imply that sales are expected to slow, with a forecast revenue decline of 7.9%, a significant reduction from annual growth of 10% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.5% next year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - AstroNova is expected to lag the wider industry.

The Bottom Line

The clear low-light was that the analyst cut their forecast revenue estimates for AstroNova next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider industry. The stock price is largely unchanged in the week since results came out, suggesting that the earnings report did not have much of an impact on market perception of the business.

One AstroNova broker/analyst has provided estimates out to 2022, which can be seen for free on our platform here.

It is also worth noting that we have found 4 warning signs for AstroNova (1 can't be ignored!) that you need to take into consideration.

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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.