Earnings Beat: VerticalScope Holdings Inc. (TSE:FORA) Just Beat Analyst Forecasts, And Analysts Have Been Lifting Their Forecasts

VerticalScope Holdings Inc. (TSE:FORA) just released its quarterly report and things are looking bullish. Revenues and losses per share were both better than expected, with revenues of US$15m leading estimates by 6.5%. Statutory losses were smaller than the analystsexpected, coming in at US$0.05 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.

View our latest analysis for VerticalScope Holdings

Taking into account the latest results, the consensus forecast from VerticalScope Holdings' eight analysts is for revenues of US$69.8m in 2024. This reflects a solid 11% improvement in revenue compared to the last 12 months. Per-share losses are expected to explode, reaching US$0.085 per share. Before this latest report, the consensus had been expecting revenues of US$65.8m and US$0.21 per share in losses. So it seems there's been a definite increase in optimism about VerticalScope Holdings' future following the latest consensus numbers, with a very favorable reduction to the loss per share forecasts in particular.

It will come as no surprise to learn thatthe analysts have increased their price target for VerticalScope Holdings 11% to CA$11.50on the back of these upgrades. 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 VerticalScope Holdings analyst has a price target of CA$14.95 per share, while the most pessimistic values it at CA$9.09. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that VerticalScope Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 15% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 0.2% 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 2.5% per year. So it looks like VerticalScope Holdings is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for VerticalScope Holdings going out to 2026, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 2 warning signs for VerticalScope Holdings (1 is concerning!) that you need to be mindful 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.