Foraco International SA Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
Last week, you might have seen that Foraco International SA (TSE:FAR) released its quarterly result to the market. The early response was not positive, with shares down 7.1% to CA$2.22 in the past week. It looks like a pretty bad result, all things considered. Although revenues of US$85m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 21% to hit US$0.044 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Foraco International after the latest results.
After the latest results, the four analysts covering Foraco International are now predicting revenues of US$343.3m in 2027. If met, this would reflect a meaningful 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 124% to US$0.26. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$340.9m and earnings per share (EPS) of US$0.26 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
Check out our latest analysis for Foraco International
It will come as no surprise then, to learn that the consensus price target is largely unchanged at CA$4.75. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Foraco International analyst has a price target of CA$5.00 per share, while the most pessimistic values it at CA$4.50. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that Foraco International is forecast to grow faster in the future than it has in the past, with revenues expected to display 11% annualised growth until the end of 2027. If achieved, this would be a much better result than the 1.9% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 13% annually. So while Foraco International's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at CA$4.75, 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. At Simply Wall St, we have a full range of analyst estimates for Foraco International going out to 2027, and you can see them free on our platform here..
We don't want to rain on the parade too much, but we did also find 3 warning signs for Foraco International (1 can't be ignored!) that you need to be mindful of.
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