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It's been a pretty great week for Brooks Automation, Inc. (NASDAQ:BRKS) shareholders, with its shares surging 14% to US$65.09 in the week since its latest yearly results. It looks like a credible result overall - although revenues of US$897m were what the analysts expected, Brooks Automation surprised by delivering a (statutory) profit of US$0.88 per share, an impressive 21% above what was forecast. 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.
Following the latest results, Brooks Automation's five analysts are now forecasting revenues of US$1.00b in 2021. This would be a meaningful 12% improvement in sales compared to the last 12 months. Per-share earnings are expected to shoot up 44% to US$1.27. Before this earnings report, the analysts had been forecasting revenues of US$957.7m and earnings per share (EPS) of US$1.10 in 2021. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a nice increase in earnings per share in particular.
It will come as no surprise to learn that the analysts have increased their price target for Brooks Automation 24% to US$70.14on the back of these upgrades. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Brooks Automation analyst has a price target of US$77.00 per share, while the most pessimistic values it at US$58.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Brooks Automation'shistorical trends, as next year's 12% revenue growth is roughly in line with 11% annual revenue 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 9.4% per year. So it's pretty clear that Brooks Automation is forecast to grow substantially faster than its industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Brooks Automation following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Brooks Automation going out to 2023, and you can see them free on our platform here..
Even so, be aware that Brooks Automation is showing 2 warning signs in our investment analysis , you should know about...
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.
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