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It's been a good week for Axcelis Technologies, Inc. (NASDAQ:ACLS) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.1% to US$87.10. The result was positive overall - although revenues of US$257m were in line with what the analysts predicted, Axcelis Technologies surprised by delivering a statutory profit of US$1.49 per share, modestly greater than expected. 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.
View our latest analysis for Axcelis Technologies
Following the latest results, Axcelis Technologies' seven analysts are now forecasting revenues of US$1.14b in 2025. This would be a credible 5.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 8.6% to US$7.39. Before this earnings report, the analysts had been forecasting revenues of US$1.16b and earnings per share (EPS) of US$7.39 in 2025. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.
The average price target was reduced 11% to US$133, with the lower revenue forecasts indicating negative sentiment towards Axcelis Technologies, even though earnings forecasts were unchanged. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Axcelis Technologies analyst has a price target of US$175 per share, while the most pessimistic values it at US$110. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Axcelis Technologies shareholders.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Axcelis Technologies' revenue growth is expected to slow, with the forecast 4.4% annualised growth rate until the end of 2025 being well below the historical 25% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 19% per year. Factoring in the forecast slowdown in growth, it seems obvious that Axcelis Technologies is also expected to grow slower than other industry participants.