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Everspin Technologies, Inc. (NASDAQ:MRAM) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates

Simply Wall St
·3 min read

It's shaping up to be a tough period for Everspin Technologies, Inc. (NASDAQ:MRAM), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. It was a pretty negative result overall, with revenues of US$10m missing analyst predictions by 3.6%. Worse, the business reported a statutory loss of US$0.21 per share, much larger than the analysts had forecast prior to the result. 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.

View our latest analysis for Everspin Technologies

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earnings-and-revenue-growth

Taking into account the latest results, the most recent consensus for Everspin Technologies from twin analysts is for revenues of US$50.4m in 2021 which, if met, would be a huge 21% increase on its sales over the past 12 months. Before this earnings report, the analysts had been forecasting revenues of US$50.8m and earnings per share (EPS) of US$0.035 in 2021. So there's definitely been a decline in sentiment after the latest results, noting the no real change to new EPS forecasts.

There's been no real change to the consensus price target of US$9.50, with Everspin Technologies seemingly executing in line with expectations.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Everspin Technologies' past performance and to peers in the same industry. It's clear from the latest estimates that Everspin Technologies' rate of growth is expected to accelerate meaningfully, with the forecast 21% revenue growth noticeably faster than its historical growth of 11%p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.5% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Everspin Technologies is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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. We have analyst estimates for Everspin Technologies going out as far as 2021, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Everspin Technologies that you should be aware 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.