Seeing Machines Limited (LON:SEE) Yearly Results: Here's What Analysts Are Forecasting For This Year
As you might know, Seeing Machines Limited (LON:SEE) last week released its latest full-year, and things did not turn out so great for shareholders. Revenues missed expectations somewhat, coming in at AU$54m, but statutory earnings fell catastrophically short, with a loss of AU$0.01 some 30% larger than what the analysts had predicted. 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 Seeing Machines
Following the latest results, Seeing Machines' three analysts are now forecasting revenues of AU$82.7m in 2023. This would be a substantial 52% improvement in sales compared to the last 12 months. Losses are expected to be contained, narrowing 15% from last year to AU$0.0053. Before this latest report, the consensus had been expecting revenues of AU$81.1m and AU$0.0053 per share in losses.
The consensus price target was unchanged at UK£0.17, suggesting that the business - losses and all - is executing in line with estimates. 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. Currently, the most bullish analyst values Seeing Machines at UK£0.24 per share, while the most bearish prices it at UK£0.12. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Seeing Machines' growth to accelerate, with the forecast 52% annualised growth to the end of 2023 ranking favourably alongside historical growth of 19% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.9% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Seeing Machines to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at UK£0.17, with the latest estimates not enough to have an impact on their price targets.
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 Seeing Machines going out to 2025, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Seeing Machines that you should be aware of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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