Earnings Update: Byrna Technologies Inc. (NASDAQ:BYRN) Just Reported And Analysts Are Boosting Their Estimates
Byrna Technologies Inc. (NASDAQ:BYRN) defied analyst predictions to release its yearly results, which were ahead of market expectations. Byrna Technologies beat expectations with revenues of US$43m arriving 8.0% ahead of forecasts. The company also reported a statutory loss of US$0.37, 9.8% smaller than was expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Byrna Technologies
Following the latest results, Byrna Technologies' three analysts are now forecasting revenues of US$56.6m in 2024. This would be a sizeable 33% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 44% to US$0.21. Before this latest report, the consensus had been expecting revenues of US$47.5m and US$0.38 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.
It will come as no surprise to learn thatthe analysts have increased their price target for Byrna Technologies 37% to US$13.38on the back of these upgrades. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Byrna Technologies at US$14.00 per share, while the most bearish prices it at US$12.75. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Byrna Technologies is an easy business to forecast or the the analysts are all using similar assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Byrna Technologies' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Byrna Technologies' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 33% growth on an annualised basis. This is compared to a historical growth rate of 48% 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 6.5% annually. Even after the forecast slowdown in growth, it seems obvious that Byrna Technologies is also expected to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on Byrna Technologies. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Byrna Technologies analysts - going out to 2026, and you can see them free on our platform here.
It is also worth noting that we have found 2 warning signs for Byrna Technologies that you need to take into consideration.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
