Perceptron, Inc. Just Recorded A 140% EPS Beat: Here's What Analysts Are Forecasting Next
Investors in Perceptron, Inc. (NASDAQ:PRCP) had a good week, as its shares rose 9.0% to close at US$4.96 following the release of its quarterly results. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at US$18m, earnings beat expectations by a notable 140%, coming in at US$0.06 per share. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what analysts are forecasting for next year.
View our latest analysis for Perceptron
Taking into account the latest results, the latest consensus from Perceptron's twin analysts is for revenues of US$78.2m in 2020, which would reflect a credible 6.8% improvement in sales compared to the last 12 months. Perceptron is also expected to turn profitable, with earnings of US$0.27 per share. Before this earnings report, analysts had been forecasting revenues of US$78.7m and earnings per share (EPS) of US$0.29 in 2020. Analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.
The average analyst price target fell 10.0% to US$9.00, with reduced earnings forecasts clearly tied to a lower valuation estimate.
Zooming out to look at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up both against past performance, and against industry growth estimates. Analysts are definitely expecting Perceptron's growth to accelerate, with the forecast 6.8% growth ranking favourably alongside historical growth of 4.2% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Perceptron is expected to grow much faster than its market.
The Bottom Line
The most important thing to take away is that analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - and our data does suggest that Perceptron's revenues are expected to grow faster than the wider market. Analysts also downgraded their price target, suggesting that the latest news has led analysts to become more pessimistic about the intrinsic value of the business.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Perceptron going out as far as 2021, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
