Yahoo Finance US$28.43 - That's What Analysts Think Bandwidth Inc. (NASDAQ:BAND) Is Worth After These Results
It's been a good week for Bandwidth Inc. (NASDAQ:BAND) shareholders, because the company has just released its latest first-quarter results, and the shares gained 9.3% to US$21.52. The results don't look great, especially considering that statutory losses grew 35% toUS$0.35 per share. Revenues of US$171m did beat expectations by 3.6%, but it looks like a bit of a cold comfort. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Bandwidth after the latest results.
View our latest analysis for Bandwidth
Taking into account the latest results, the most recent consensus for Bandwidth from nine analysts is for revenues of US$712.6m in 2024. If met, it would imply a meaningful 12% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 22% to US$0.84. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$701.2m and losses of US$0.60 per share in 2024. While this year's revenue estimates held steady, there was also a very substantial increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
Although the analysts are now forecasting higher losses, the average price target rose 20% to 23.71429, which could indicate that these losses are expected to be "one-off", or are not anticipated to have a longer-term impact on the business. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Bandwidth analyst has a price target of US$40.00 per share, while the most pessimistic values it at US$18.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bandwidth's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Bandwidth's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 17% growth on an annualised basis. This is compared to a historical growth rate of 23% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 1.8% annually. So it's pretty clear that, while Bandwidth's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue 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. At Simply Wall St, we have a full range of analyst estimates for Bandwidth going out to 2026, and you can see them free on our platform here..
Plus, you should also learn about the 4 warning signs we've spotted with Bandwidth (including 1 which is significant) .
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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.
