Tribe Property Technologies Inc. (CVE:TRBE) Just Reported And Analysts Have Been Cutting Their Estimates

It's been a good week for Tribe Property Technologies Inc. (CVE:TRBE) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.1% to CA$1.65. It wasn't the greatest result, with ongoing losses and revenues of CA$4.5m falling short of analyst predictions. The losses were a relative bright spot though, with a per-share statutory loss of CA$0.13 being moderately smaller than the analysts forecast. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Our analysis indicates that TRBE is potentially overvalued!

After the latest results, the twin analysts covering Tribe Property Technologies are now predicting revenues of CA$24.9m in 2023. If met, this would reflect a substantial 46% improvement in sales compared to the last 12 months. The loss per share is expected to ameliorate slightly, reducing to CA$0.40. Before this latest report, the consensus had been expecting revenues of CA$26.9m and CA$0.34 per share in losses. So it's pretty clear the analysts have mixed opinions on Tribe Property Technologies after this update; revenues were downgraded and per-share losses expected to increase.

The consensus price target fell 13% to CA$3.50, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Tribe Property Technologies' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Tribe Property Technologies'historical trends, as the 35% annualised revenue growth to the end of 2023 is roughly in line with the 30% annual revenue growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 16% annually. So it's pretty clear that Tribe Property Technologies is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. 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 in mind, we wouldn't be too quick to come to a conclusion on Tribe Property Technologies. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Tribe Property Technologies going out as far as 2024, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for Tribe Property Technologies that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.