Revenue Beat: Amtech Systems, Inc. Exceeded Revenue Forecasts By 12% And Analysts Are Updating Their Estimates
Amtech Systems, Inc. (NASDAQ:ASYS) just released its latest quarterly results and things are looking bullish. Amtech Systems beat revenue and statutory earnings per share (EPS) expectations, with sales hitting US$27m (12% ahead of estimates) and EPS reaching US$0.07 (a 5.0% beat). The 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Amtech Systems after the latest results.
View our latest analysis for Amtech Systems
Taking into account the latest results, the consensus forecast from Amtech Systems' three analysts is for revenues of US$113.2m in 2022, which would reflect a decent 20% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to surge 204% to US$0.39. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$110.2m and earnings per share (EPS) of US$0.47 in 2022. While next year's revenue estimates increased, there was also a substantial drop in EPS expectations, suggesting the consensus has a bit of a mixed view of these results.
The consensus price target was unchanged at US$16.33, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Amtech Systems analyst has a price target of US$18.00 per share, while the most pessimistic values it at US$15.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that Amtech Systems is forecast to grow faster in the future than it has in the past, with revenues expected to display 27% annualised growth until the end of 2022. If achieved, this would be a much better result than the 15% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 12% per year. Not only are Amtech Systems' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Amtech Systems. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is 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 forecasts for Amtech Systems going out to 2024, and you can see them free on our platform here.
Even so, be aware that Amtech Systems is showing 1 warning sign in our investment analysis , you should know about...
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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.
