Yahoo Finance Objective Corporation Limited Just Missed EPS By 8.4%: Here's What Analysts Think Will Happen Next
Objective Corporation Limited (ASX:OCL) shareholders are probably feeling a little disappointed, since its shares fell 5.7% to AU$15.70 in the week after its latest full-year results. Revenues of AU$107m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at AU$0.20, missing estimates by 8.4%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Objective
Following the latest results, Objective's four analysts are now forecasting revenues of AU$123.6m in 2023. This would be a meaningful 16% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to soar 36% to AU$0.28. Before this earnings report, the analysts had been forecasting revenues of AU$126.0m and earnings per share (EPS) of AU$0.28 in 2023. 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.
The analysts reconfirmed their price target of AU$16.90, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Objective, with the most bullish analyst valuing it at AU$21.45 and the most bearish at AU$10.43 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying 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. It's clear from the latest estimates that Objective's rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 12% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. Objective is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
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. 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. At Simply Wall St, we have a full range of analyst estimates for Objective going out to 2025, and you can see them free on our platform here..
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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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