Earnings update: New Zealand King Salmon Investments Limited (NZSE:NZK) just released a report and analysts cut their forecasts

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Shareholders of New Zealand King Salmon Investments Limited (NZSE:NZK) has had a terrible week, with shares falling 44% to NZ$0.50 in the week since its last annual results. Revenue was in line with expectations at NZ$175 million, while statutory losses climbed to NZ$0.53 per share. Earnings are an important time for investors because they can follow a company’s performance, watch what analysts predict for the next year, and see if there has been a change in sentiment towards the company. We’ve rounded up the most recent statutory forecasts to see if analysts have changed their earnings models as a result of these results.

Check out our latest analysis for New Zealand King Salmon Investments

NZSE: NZK Earnings and Revenue Growth April 15, 2022

Given the latest results, the three analysts covering New Zealand King Salmon Investments provided consensus revenue estimates of NZ$130.8 million in 2023, which would reflect a stressful 25% drop in sales over the past few years. last 12 months. Earnings are expected to improve, with New Zealand King Salmon Investments expected to report statutory profit of NZ$0.014 per share. Looking ahead to this report, analysts had modeled 2023 revenue of NZ$177.2 million and earnings per share (EPS) of NZ$0.017. result of these results, with a sharp reduction in earnings estimates and a substantial decline in earnings per share.

The consensus price target fell 40% to NZ$0.95, with the weaker earnings outlook clearly leading valuation estimates.

Looking now at the big picture, one way to understand these forecasts is to see how they compare to past performance and industry growth estimates. We highlight that sales are expected to reverse, with an expected decline in annualized revenue of 25% through the end of 2023. This is a notable change from historical growth of 4.2% during of the last five years. Contrast that with our data, which suggests that other companies in the same industry should, overall, see revenue growth of 8.9% annually. So while its revenue is expected to decline, there is no bright side to this cloud – New Zealand King Salmon Investments is expected to lag the wider industry.

The essential

The biggest concern is that analysts have cut their earnings-per-share estimates, suggesting headwinds may be coming for New Zealand King Salmon Investments. Unfortunately, they have also lowered their earnings estimates, and our data indicates that earnings are expected to underperform the overall industry. Even so, earnings per share is more important to the intrinsic value of the company. Additionally, analysts have also cut their price targets, suggesting the latest news has led to greater pessimism about the company’s intrinsic value.

Continuing this thinking, we believe that the company’s long-term outlook is much more relevant than next year’s results. We have forecasts for New Zealand King Salmon investments through 2025, and you can view them for free on our platform here.

Remember that there may still be risks. For example, we have identified 3 warning signs for King Salmon Investments in New Zealand (1 is a little worrying) you should be aware.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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