Yahoo Finance US$6.33 - That's What Analysts Think Airgain, Inc. (NASDAQ:AIRG) Is Worth After These Results
The investors in Airgain, Inc.'s (NASDAQ:AIRG) will be rubbing their hands together with glee today, after the share price leapt 37% to US$5.32 in the week following its annual results. The statutory results were not great - while revenues of US$56m were in line with expectations,Airgain lost US$1.20 a share in the process. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for Airgain
After the latest results, the twin analysts covering Airgain are now predicting revenues of US$62.8m in 2024. If met, this would reflect a solid 12% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 36% to US$0.80. Before this latest report, the consensus had been expecting revenues of US$60.5m and US$0.69 per share in losses. While this year's revenue estimates increased, there was also a notable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
The average price target rose 12% to US$6.33, even thoughthe analysts have been updating their forecasts to show higher revenues and higher forecast losses.
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. It's clear from the latest estimates that Airgain's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 4.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.3% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Airgain to grow faster 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 Airgain. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.
And what about risks? Every company has them, and we've spotted 2 warning signs for Airgain you should know about.
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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.
