Yahoo Finance Analysts Are Upgrading VerticalScope Holdings Inc. (TSE:FORA) After Its Latest Results
VerticalScope Holdings Inc. (TSE:FORA) defied analyst predictions to release its quarterly results, which were ahead of market expectations. Revenues and losses per share were both better than expected, with revenues of US$15m leading estimates by 6.5%. Statutory losses were smaller than the analystsexpected, coming in at US$0.05 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for VerticalScope Holdings
Taking into account the latest results, the most recent consensus for VerticalScope Holdings from eight analysts is for revenues of US$69.8m in 2024. If met, it would imply a solid 11% increase on its revenue over the past 12 months. Losses are forecast to balloon 28% to US$0.085 per share. Before this earnings announcement, the analysts had been modelling revenues of US$65.8m and losses of US$0.21 per share in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a very favorable reduction to loss per share in particular.
The consensus price target rose 11% to CA$11.50, with the analysts encouraged by the higher revenue and lower forecast losses for next year. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on VerticalScope Holdings, with the most bullish analyst valuing it at CA$14.95 and the most bearish at CA$9.09 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
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. For example, we noticed that VerticalScope Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 15% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 0.2% a year over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 2.5% per year. So it looks like VerticalScope Holdings is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. 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 VerticalScope Holdings analysts - going out to 2026, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 2 warning signs for VerticalScope Holdings (1 makes us a bit uncomfortable) you should be aware of.
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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.
