Yahoo Finance Martello Technologies Group Inc. Just Reported Earnings, And Analysts Cut Their Target Price
It's been a mediocre week for Martello Technologies Group Inc. (CVE:MTLO) shareholders, with the stock dropping 14% to CA$0.26 in the week since its latest quarterly results. Revenues of CA$3.4m arrived in line with expectations, although statutory losses per share were CA$0.02, an impressive 100% smaller than what broker models predicted. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what analysts' statutory forecasts suggest is in store for next year.
Check out our latest analysis for Martello Technologies Group
Taking into account the latest results, the current consensus from Martello Technologies Group's three analysts is for revenues of CA$17.0m in 2021, which would reflect a sizeable 29% increase on its sales over the past 12 months. Per-share statutory losses are expected to explode, reaching CA$0.01 per share. Before this earnings result, analysts had predicted CA$17.0m revenue in 2021, although there was no accompanying EPS estimate. So we can see that while the consensus made no real change to its revenue estimates, analysts began providing loss per share estimates, suggesting the business' (lack of) earnings is becoming more crucial to the business case following these results.
The consensus price target fell 5.6% to CA$0.57 per share, with analysts clearly concerned by ballooning losses. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Martello Technologies Group analyst has a price target of CA$0.70 per share, while the most pessimistic values it at CA$0.55. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that analysts have a clear view on its prospects.
Zooming out to look at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up both against past performance, and against industry growth estimates. We would highlight that Martello Technologies Group's revenue growth is expected to slow, with forecast 29% increase next year well below the historical 46%p.a. growth over the last three years. Juxtapose this against the other companies in the market with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.6% next year. So it's pretty clear that, while Martello Technologies Group's revenue growth is expected to slow, it's still expected to grow faster than the market itself.
The Bottom Line
Happily, there were no major changes to revenue forecasts, with analysts still expecting the business 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.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Martello Technologies Group going out to 2024, and you can see them free on our platform here..
We also provide an overview of the Martello Technologies Group Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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