As you might know, Kornit Digital Ltd. (NASDAQ:KRNT) just kicked off its latest quarterly results with some very strong numbers. Kornit Digital beat earnings, with revenues hitting US$57m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 12%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Kornit Digital after the latest results.
See our latest analysis for Kornit Digital
Taking into account the latest results, the current consensus from Kornit Digital's five analysts is for revenues of US$246.8m in 2021, which would reflect a major 45% increase on its sales over the past 12 months. Earnings are expected to improve, with Kornit Digital forecast to report a statutory profit of US$0.50 per share. Before this earnings report, the analysts had been forecasting revenues of US$239.5m and earnings per share (EPS) of US$0.48 in 2021. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
It will come as no surprise to learn that the analysts have increased their price target for Kornit Digital 12% to US$73.67on the back of these upgrades. 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 Kornit Digital at US$80.00 per share, while the most bearish prices it at US$65.00. This is a very narrow spread of estimates, implying either that Kornit Digital is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Kornit Digital's growth to accelerate, with the forecast 45% growth ranking favourably alongside historical growth of 15% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.3% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Kornit Digital to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Kornit Digital following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Kornit Digital analysts - going out to 2022, and you can see them free on our platform here.
It is also worth noting that we have found 2 warning signs for Kornit Digital that you need to take into consideration.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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