AFT Pharmaceuticals Limited Just Missed Earnings – But Analysts Have Updated Their Models

It’s been a pretty great week for AFT Pharmaceuticals Limited (NZSE:AFT) shareholders, with its shares surging 11% to NZ$3.88 in the week since its latest yearly results. Revenues of NZ$255m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at NZ$0.14, missing estimates by 6.7%. 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. With this in mind, we’ve gathered the latest statutory forecasts to see what the analysts are expecting for next year.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Taking into account the latest results, the consensus forecast from AFT Pharmaceuticals’ dual analysts is for revenues of NZ$303.9m in 2027. This reflects a notable 19% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 34% to NZ$0.19. Before this earnings report, the analysts had been forecasting revenues of NZ$300.7m and earnings per share (EPS) of NZ$0.19 in 2027. So it looks like there’s been a small decline in overall sentiment after the recent results – there’s been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Check out our latest analysis for AFT Pharmaceuticals

Althoughthe analysts have revised their earnings forecasts for next year, they’ve also lifted the consensus price target 6.9% to NZ$4.65, suggesting the revised estimates are not indicative of a weaker long-term future for the business.

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. We can infer from the latest estimates that forecasts expect a continuation of AFT Pharmaceuticals’historical trends, as the 19% annualised revenue growth to the end of 2027 is roughly in line with the 16% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 41% annually. So it’s pretty clear that AFT Pharmaceuticals is expected to grow slower than similar companies in the same industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for AFT Pharmaceuticals. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it’s tracking in line with expectations. Although our data does suggest that AFT Pharmaceuticals’ revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn’t be too quick to come to a conclusion on AFT Pharmaceuticals. Long-term earnings power is much more important than next year’s profits. We have analyst estimates for AFT Pharmaceuticals going out as far as 2029, 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 AFT Pharmaceuticals 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.