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As you might know, Kopin Corporation (NASDAQ:KOPN) just kicked off its latest third-quarter results with some very strong numbers. Kopin outperformed on both revenues and the expected loss per share, with revenues of US$9.5m beating estimates by 16%. Statutory losses were US$0.01, 50% smaller thanthe analysts 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. 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 Kopin from twin analysts is for revenues of US$39.3m in 2021 which, if met, would be a solid 13% increase on its sales over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 40% to US$0.095. Before this latest report, the consensus had been expecting revenues of US$38.3m and US$0.11 per share in losses. So it seems there's been a definite increase in optimism about Kopin's future following the latest consensus numbers, with a the loss per share forecasts in particular.
It will come as no surprise to learn thatthe analysts have increased their price target for Kopin 50% to US$2.25on the back of these upgrades.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Kopin's rate of growth is expected to accelerate meaningfully, with the forecast 13% revenue growth noticeably faster than its historical growth of 2.4%p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.9% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Kopin 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. 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 least one analyst has provided forecasts out to 2021, which can be seen for free on our platform here.
We don't want to rain on the parade too much, but we did also find 3 warning signs for Kopin (1 is significant!) that you need to be mindful of.
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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