Clearwise AG Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Clearwise AG (DUSE:ABO) defied analyst predictions to release its yearly results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 3.1% to hit €37m. Clearwise also reported a statutory profit of €0.05, which was an impressive 25% above what the analysts had forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Clearwise

Following the recent earnings report, the consensus from four analysts covering Clearwise is for revenues of €35.4m in 2021, implying a perceptible 5.4% decline in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 511% (on a statutory basis) to €0.05. In the lead-up to this report, the analysts had been modelling revenues of €35.0m and earnings per share (EPS) of €0.01 in 2021. While the analysts have made no real change to their revenue estimates, we can see that the consensus is now modelling a loss next year - a clear dip in sentiment compared to the previous outlook of a profit.

As a result, there was no major change to the consensus price target of €3.25, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. 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 Clearwise, with the most bullish analyst valuing it at €3.50 and the most bearish at €2.61 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Clearwise's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 5.4% by the end of 2021. This indicates a significant reduction from annual growth of 5.7% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.5% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Clearwise is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts are expecting Clearwise to become unprofitable next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Clearwise's revenues are expected to perform worse than the wider industry. The consensus price target held steady at €3.25, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Clearwise going out to 2025, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Clearwise that we have uncovered.

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