LifeSpeak Inc. (TSE:LSPK) Just Reported Earnings, And Analysts Cut Their Target Price

As you might know, LifeSpeak Inc. (TSE:LSPK) recently reported its first-quarter numbers. Results look to have been somewhat negative - revenue fell 3.5% short of analyst estimates at CA$12m, although statutory losses were somewhat better. The per-share loss was CA$0.03, 64% smaller than the analysts were expecting prior to the result. 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.

Check out our latest analysis for LifeSpeak

After the latest results, the consensus from LifeSpeak's five analysts is for revenues of CA$50.2m in 2024, which would reflect a perceptible 2.3% decline in revenue compared to the last year of performance. Losses are predicted to fall substantially, shrinking 56% to CA$0.20. Before this latest report, the consensus had been expecting revenues of CA$52.8m and CA$0.29 per share in losses. Although the revenue estimates have fallen somewhat, LifeSpeak'sfuture looks a little different to the past, with a very favorable reduction to the loss per share forecasts in particular.

The consensus price target fell 15% to CA$0.50, with the dip in revenue estimates clearly souring sentiment, despite the forecast reduction in losses. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic LifeSpeak analyst has a price target of CA$0.60 per share, while the most pessimistic values it at CA$0.35. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 3.0% annualised decline to the end of 2024. That is a notable change from historical growth of 41% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 18% annually for the foreseeable future. It's pretty clear that LifeSpeak's revenues are expected to perform substantially worse 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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Yet - earnings are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 LifeSpeak going out to 2025, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for LifeSpeak that 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.