There's been a notable change in appetite for Coda Octopus Group, Inc. (NASDAQ:CODA) shares in the week since its quarterly report, with the stock down 16% to US$10.00. Revenues US$6.9m disappointed slightly, at8.2% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of US$0.15 coming in 15% above what was anticipated. 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 Coda Octopus Group after the latest results.

Following the latest results, Coda Octopus Group's two analysts are now forecasting revenues of US$28.7m in 2026. This would be a credible 2.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 8.5% to US$0.47. In the lead-up to this report, the analysts had been modelling revenues of US$30.8m and earnings per share (EPS) of US$0.53 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

The analysts made no major changes to their price target of US$14.00, suggesting the downgrades are not expected to have a long-term impact on Coda Octopus Group's valuation.

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. The analysts are definitely expecting Coda Octopus Group's growth to accelerate, with the forecast 5.6% annualised growth to the end of 2026 ranking favourably alongside historical growth of 4.0% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 14% per year. So it's clear that despite the acceleration in growth, Coda Octopus Group is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Coda Octopus Group going out as far as 2028, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.