Yahoo Finance AudioEye, Inc. (NASDAQ:AEYE) Annual Results Just Came Out: Here's What Analysts Are Forecasting For This Year
AudioEye, Inc. (NASDAQ:AEYE) defied analyst predictions to release its full-year results, which were ahead of market expectations. Results overall were credible, with revenues arriving 4.1% better than analyst forecasts at US$11m. Higher revenues also resulted in lower statutory losses, which were US$0.97 per share, some 4.1% smaller than the analysts expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for AudioEye
Taking into account the latest results, the most recent consensus for AudioEye from twin analysts is for revenues of US$17.2m in 2020 which, if met, would be a major 60% increase on its sales over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 26% to US$0.71. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$17.2m and losses of US$1.25 per share in 2020. Although the revenue estimates have not really changed AudioEye's future looks a little different to the past, with a considerable lift to the loss per share forecasts in particular.
There's been no major changes to the consensus price target of US$10.00, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation.
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. Next year brings more of the same, according to the analysts, with revenue forecast to grow 60%, in line with its 60% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 12% per year. So it's pretty clear that AudioEye is forecast to grow substantially faster than its industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster 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. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.
Even so, be aware that AudioEye is showing 4 warning signs in our investment analysis , and 1 of those is potentially serious...
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