Yahoo Finance Earnings Update: VOTI Detection Inc. (CVE:VOTI) Just Reported And Analysts Are Trimming Their Forecasts
As you might know, VOTI Detection Inc. (CVE:VOTI) last week released its latest first-quarter, and things did not turn out so great for shareholders. It definitely looks like a negative result overall with revenues falling 10% short of analyst estimates at CA$6.0m. Statutory losses were CA$0.08 per share, 78% bigger than what the analysts 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for VOTI Detection
Following the recent earnings report, the consensus fromtwo analysts covering VOTI Detection is for revenues of CA$25.1m in 2020, implying an uncomfortable 9.3% decline in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 35% to CA$0.13. Before this earnings announcement, the analysts had been modelling revenues of CA$32.0m and losses of CA$0.12 per share in 2020. There's been a definite change in sentiment in this update, with the analysts administering a notable cut to next year's revenue estimates, while at the same time increasing their loss per share forecasts.
The consensus price target fell 37% to CA$2.00, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the VOTI Detection's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast revenue decline of 9.3%, a significant reduction from annual growth of 29% over the last year. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.9% annually for the foreseeable future. It's pretty clear that VOTI Detection's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at VOTI Detection. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2021, which can be seen for free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 5 warning signs for VOTI Detection (1 is a bit concerning) you should be aware of.
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