Amotiv Limited (ASX:AOV) Just Reported Yearly Earnings: Have Analysts Changed Their Mind On The Stock?

In This Article:

It's been a good week for Amotiv Limited (ASX:AOV) shareholders, because the company has just released its latest annual results, and the shares gained 8.5% to AU$10.74. Results were roughly in line with estimates, with revenues of AU$987m and statutory earnings per share of AU$0.69. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Amotiv

earnings-and-revenue-growth
earnings-and-revenue-growth

After the latest results, the eleven analysts covering Amotiv are now predicting revenues of AU$1.04b in 2025. If met, this would reflect a reasonable 5.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 8.4% to AU$0.77. In the lead-up to this report, the analysts had been modelling revenues of AU$1.04b and earnings per share (EPS) of AU$0.79 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at AU$12.81, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. Currently, the most bullish analyst values Amotiv at AU$14.40 per share, while the most bearish prices it at AU$10.80. This is a very narrow spread of estimates, implying either that Amotiv is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. It's pretty clear that there is an expectation that Amotiv's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.3% growth on an annualised basis. This is compared to a historical growth rate of 21% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.8% per year. Factoring in the forecast slowdown in growth, it seems obvious that Amotiv is also expected to grow slower than other industry participants.