TransAct Technologies Incorporated (NASDAQ:TACT) defied analyst predictions to release its quarterly results, which were ahead of market expectations. TransAct Technologies outperformed estimates, with revenues of US$12m beating estimates by 11%. Statutory losses were US$0.03, 81% smaller thanthe analysts expected. 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 TransAct Technologies after the latest results.

See our latest analysis for TransAct Technologies

Taking into account the latest results, the twin analysts covering TransAct Technologies provided consensus estimates of US$47.2m revenue in 2024, which would reflect a chunky 11% decline over the past 12 months. Losses are forecast to balloon 741% to US$0.43 per share. Before this latest report, the consensus had been expecting revenues of US$46.1m and US$0.23 per share in losses. While this year's revenue estimates increased, there was also a very substantial increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

It will come as no surprise that expanding losses caused the consensus price target to fall 29% to US$6.75with the analysts implicitly ranking ongoing losses as a greater concern than growing revenues.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 20% by the end of 2024. This indicates a significant reduction from annual growth of 13% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 7.6% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - TransAct Technologies is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.