As you might know, Plover Bay Technologies Limited (HKG:1523) recently reported its annual numbers. The result was fairly weak overall, with revenues of US$46m being 9.6% less than what analysts had been modelling. Analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what analysts are expecting for next year.
Taking into account the latest results, the latest consensus from Plover Bay Technologies's one analyst is for revenues of US$52.7m in 2020, which would reflect a notable 15% improvement in sales compared to the last 12 months. Prior to the latest earnings, analysts were forecasting revenues of US$60.0m in 2020, and did not provide an EPS estimate. The consensus view seems to have become more pessimistic on Plover Bay Technologies, noting the real cut to revenue estimates following last week's results.
The average analyst price target fell 14% to US$0.21, with analysts clearly having become less optimistic about Plover Bay Technologies's prospects following its latest earnings.
In addition, we can look to Plover Bay Technologies's past performance and see whether business is expected to improve, and if the company is expected to perform better than wider market. Next year brings more of the same, according to analysts, with revenue forecast to grow 15%, in line with its 18% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the are forecast to see their revenues grow 15% per year. It's clear that while Plover Bay Technologies's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the market itself.
The Bottom Line
The most important thing to take away from these updates is that analysts are definitely optimistic on the business, given that they've begun forecasting positive per-share earnings for next year. Lamentably, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the market itself. 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.
One Plover Bay Technologies broker/analyst has provided estimates out to 2021, which can be seen for free on our platform here.
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