Evertz Technologies Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

There's been a notable change in appetite for Evertz Technologies Limited (TSE:ET) shares in the week since its quarterly report, with the stock down 14% to CA$12.93. It looks like a pretty bad result, all things considered. Although revenues of CA$118m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 25% to hit CA$0.10 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following last week's earnings report, Evertz Technologies' four analysts are forecasting 2027 revenues to be CA$525.5m, approximately in line with the last 12 months. Statutory earnings per share are forecast to fall 12% to CA$0.69 in the same period. Before this earnings report, the analysts had been forecasting revenues of CA$538.4m and earnings per share (EPS) of CA$0.86 in 2027. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

See our latest analysis for Evertz Technologies

It'll come as no surprise then, to learn that the analysts have cut their price target 7.7% to CA$16.38. 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 Evertz Technologies at CA$17.00 per share, while the most bearish prices it at CA$15.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Evertz Technologies' revenue growth is expected to slow, with the forecast 0.9% annualised growth rate until the end of 2027 being well below the historical 5.2% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 14% per year. Factoring in the forecast slowdown in growth, it seems obvious that Evertz Technologies is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Evertz Technologies. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Evertz Technologies' future valuation.

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 Evertz Technologies going out to 2028, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 2 warning signs for Evertz Technologies you should be aware of.

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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.