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The LiveRamp Holdings, Inc. (NYSE:RAMP) Full-Year Results Are Out And Analysts Have Published New Forecasts

The investors in LiveRamp Holdings, Inc.'s (NYSE:RAMP) will be rubbing their hands together with glee today, after the share price leapt 27% to US$48.17 in the week following its yearly results. It looks like the results were pretty good overall. While revenues of US$381m were in line with analyst predictions, statutory losses were much smaller than expected, with LiveRamp Holdings losing US$1.84 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for LiveRamp Holdings

NYSE:RAMP Past and Future Earnings May 24th 2020
NYSE:RAMP Past and Future Earnings May 24th 2020

Taking into account the latest results, the most recent consensus for LiveRamp Holdings from ten analysts is for revenues of US$419.5m in 2021 which, if met, would be a decent 10% increase on its sales over the past 12 months. Losses are expected to increase substantially, hitting US$2.09 per share. Before this earnings announcement, the analysts had been modelling revenues of US$433.8m and losses of US$1.45 per share in 2021. While this year's revenue estimates dropped there was also a loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

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The average price target was broadly unchanged at US$51.09, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the 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 LiveRamp Holdings analyst has a price target of US$63.00 per share, while the most pessimistic values it at US$25.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that LiveRamp Holdings is forecast to grow faster in the future than it has in the past, with revenues expected to grow 10%. If achieved, this would be a much better result than the 26% annual decline 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 revenue grow 11% per year. So it looks like LiveRamp Holdings is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at US$51.09, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for LiveRamp Holdings going out to 2025, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for LiveRamp Holdings that we have uncovered.

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This article by Simply Wall St is general in nature. 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. Thank you for reading.