It's been a mediocre week for Avante Logixx Inc. (CVE:XX) shareholders, with the stock dropping 17% to CA$1.13 in the week since its latest quarterly results. Revenues were CA$14m, with Avante Logixx reporting some -4.6% below analyst expectations. Analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether analysts have changed their earnings models, following these results.
Taking into account the latest results, the most recent consensus for Avante Logixx from three analysts is for revenues of CA$77.9m in 2021, which is a major 58% increase on its sales over the past 12 months. Prior to the latest earnings, analysts were forecasting revenues of CA$78.4m in 2021, and did not provide an EPS estimate. Overall it looks like Avante Logixx is performing in line with analyst expectations, given analysts have updated their numbers and there's been no real change to next year's forecast following these results.
Intriguingly, analysts have cut their price target 9.9% to CA$2.58 showing a clear decline in sentiment around Avante Logixx's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Avante Logixx analyst has a price target of CA$3.50 per share, while the most pessimistic values it at CA$1.75. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Further, we can compare these estimates to past performance, and see how Avante Logixx forecasts compare to the wider market's forecast performance. Analysts are definitely expecting Avante Logixx's growth to accelerate, with the forecast 58% growth ranking favourably alongside historical growth of 28% 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 18% per year. It seems obvious that, while the growth outlook is brighter than the recent past, analysts also expect Avante Logixx to grow faster than the wider market.
The Bottom Line
The biggest takeaway for us from these new estimates is the bullish forecast for profits next year. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - and our data does suggest that Avante Logixx's revenues are expected to grow faster than the wider market. Analysts also downgraded their price target, suggesting that the latest news has led analysts to become more pessimistic about the intrinsic value of the business.
We have estimates for Avante Logixx from its three analysts , and you can see them free on our platform here.
You can also view our analysis of Avante Logixx's balance sheet, and whether we think Avante Logixx is carrying too much debt, for free on our platform here.
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