VerticalScope Holdings Inc. (TSE:FORA) Analysts Are Pretty Bullish On The Stock After Recent Results

Shareholders will be ecstatic, with their stake up 59% over the past week following VerticalScope Holdings Inc.'s (TSE:FORA) latest yearly results. Revenues of US$61m arrived in line with expectations, although statutory losses per share were US$0.23, an impressive 32% smaller than what broker models predicted. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for VerticalScope Holdings

Taking into account the latest results, the most recent consensus for VerticalScope Holdings from seven analysts is for revenues of US$65.8m in 2024. If met, it would imply a solid 8.1% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 34% to US$0.15. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$65.0m and losses of US$0.21 per share in 2024. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a very promising decrease in losses per share in particular.

These new estimates led to the consensus price target rising 28% to CA$10.01, with lower forecast losses suggesting things could be looking up for VerticalScope Holdings. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on VerticalScope Holdings, with the most bullish analyst valuing it at CA$14.03 and the most bearish at CA$6.89 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the VerticalScope Holdings' past performance and to peers in the same industry. It's clear from the latest estimates that VerticalScope Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 8.1% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 2.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect VerticalScope Holdings to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on VerticalScope Holdings. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple VerticalScope Holdings analysts - going out to 2026, and you can see them free on our platform here.

You can also view our analysis of VerticalScope Holdings' balance sheet, and whether we think VerticalScope Holdings is carrying too much debt, for free on our platform here.

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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.