Cluey Ltd (ASX:CLU) Analysts Are Cutting Their Estimates: Here's What You Need To Know

Shareholders will be ecstatic, with their stake up 29% over the past week following Cluey Ltd's (ASX:CLU) latest full-year results. The statutory results were not great - while revenues of AU$39m were in line with expectations,Cluey lost AU$0.13 a share in the process. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Cluey

Following the latest results, Cluey's twin analysts are now forecasting revenues of AU$42.6m in 2024. This would be a notable 8.2% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 58% to AU$0.041. Yet prior to the latest earnings, the analysts had been forecasting revenues of AU$45.5m and losses of AU$0.03 per share in 2024. So it's pretty clear the analysts have mixed opinions on Cluey after this update; revenues were downgraded and per-share losses expected to increase.

The average price target fell 7.7% to AU$0.30, implicitly signalling that lower earnings per share are a leading indicator for Cluey's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Cluey's revenue growth is expected to slow, with the forecast 8.2% annualised growth rate until the end of 2024 being well below the historical 41% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 10% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Cluey.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Cluey's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Cluey going out as far as 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 4 warning signs for Cluey you should be aware of.

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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.