Yahoo Finance Tuya Inc. (NYSE:TUYA) Just Reported First-Quarter Earnings And Analysts Are Lifting Their Estimates
It's been a good week for Tuya Inc. (NYSE:TUYA) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.1% to US$2.04. Revenues were US$62m, and Tuya came in a solid 16% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Tuya
After the latest results, the five analysts covering Tuya are now predicting revenues of US$280.5m in 2024. If met, this would reflect a solid 15% improvement in revenue compared to the last 12 months. The loss per share is expected to ameliorate slightly, reducing to US$0.07. Before this earnings announcement, the analysts had been modelling revenues of US$263.4m and losses of US$0.08 per share in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a cut to loss per share in particular.
Despite these upgrades,the analysts have not made any major changes to their price target of US$2.98, implying that their latest estimates don't have a long term impact on what they think the stock is worth. 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 Tuya analyst has a price target of US$3.50 per share, while the most pessimistic values it at US$2.70. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Tuya is an easy business to forecast or the the analysts are all using similar assumptions.
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. For example, we noticed that Tuya's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 20% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 8.3% a year over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 13% per year. Not only are Tuya's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, they also upgraded their revenue estimates, and are forecasting them 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 Simply Wall St, we have a full range of analyst estimates for Tuya going out to 2026, and you can see them free on our platform here..
It is also worth noting that we have found 1 warning sign for Tuya that you need to take into consideration.
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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.
