Yahoo Finance Earnings Update: Here's Why Analysts Just Lifted Their kneat.com, inc. (TSE:KSI) Price Target To CA$4.85
It's been a good week for kneat.com, inc. (TSE:KSI) shareholders, because the company has just released its latest first-quarter results, and the shares gained 10.0% to CA$4.40. The results look positive overall; while revenues of CA$11m were in line with analyst predictions, statutory losses were 7.7% smaller than expected, with kneat.com losing CA$0.04 per share. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for kneat.com
Taking into account the latest results, the current consensus from kneat.com's five analysts is for revenues of CA$47.7m in 2024. This would reflect a sizeable 29% increase on its revenue over the past 12 months. Losses are supposed to decline, shrinking 13% from last year to CA$0.15. Before this earnings announcement, the analysts had been modelling revenues of CA$47.1m and losses of CA$0.15 per share in 2024. So it's pretty clear consensus is mixed on kneat.com after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a pronounced increase to per-share loss expectations.
Despite expectations of heavier losses next year,the analysts have lifted their price target 11% to CA$4.85, perhaps implying these losses are not expected to be recurring over the long term. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on kneat.com, with the most bullish analyst valuing it at CA$5.25 and the most bearish at CA$4.15 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of kneat.com'shistorical trends, as the 40% annualised revenue growth to the end of 2024 is roughly in line with the 47% 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 11% per year. So it's pretty clear that kneat.com is forecast to grow substantially faster than its 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 kneat.com. 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 kneat.com going out to 2026, and you can see them free on our platform here..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with kneat.com , and understanding them should be part of your investment process.
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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.
