InVision Aktiengesellschaft Just Missed EPS By 37%: Here's What Analysts Think Will Happen Next

It's been a good week for InVision Aktiengesellschaft (ETR:IVX) shareholders, because the company has just released its latest yearly results, and the shares gained 7.9% to €27.20. Statutory earnings per share fell badly short of expectations, coming in at €0.17, some 37% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at €13m. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on InVision after the latest results.

Check out our latest analysis for InVision

Taking into account the latest results, the most recent consensus for InVision from lone analyst is for revenues of €14.0m in 2021 which, if met, would be a notable 9.2% increase on its sales over the past 12 months. The company is forecast to report a statutory loss of €0.37 in 2021, a sharp decline from a profit over the last year. In the lead-up to this report, the analyst had been modelling revenues of €13.3m and earnings per share (EPS) of €0.40 in 2021. Yet despite a modest lift to revenues, the analyst is now forecasting a loss instead of a profit, which looks like a reduction in sentiment after the latest results.

The average price target rose 55% to €31.00, even thoughthe analyst has been updating their forecasts to show higher revenues and higher forecast losses.

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. One thing stands out from these estimates, which is that InVision is forecast to grow faster in the future than it has in the past, with revenues expected to display 9.2% annualised growth until the end of 2021. If achieved, this would be a much better result than the 0.1% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 6.1% per year. Not only are InVision's revenues expected to improve, it seems that the analyst is also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst is expecting InVision to become unprofitable next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

It is also worth noting that we have found 5 warning signs for InVision (2 don't sit too well with us!) that you need to take into consideration.

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This article by Simply Wall St is general in nature. 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.
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