Earnings Update: Verimatrix SA (EPA:VMX) Just Reported Its Half-Yearly Results And Analysts Are Updating Their Forecasts

The interim results for Verimatrix SA (EPA:VMX) were released last week, making it a good time to revisit its performance. The result was fairly weak overall, with revenues of US$31m being 4.6% less than what the analysts had been modelling. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Verimatrix

Following last week's earnings report, Verimatrix's dual analysts are forecasting 2024 revenues to be US$62.5m, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$62.4m and losses of US$0.12 per share in 2024. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

There's been no real change to the consensus price target of €0.52, with Verimatrix seemingly executing in line with expectations.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that Verimatrix is forecast to grow faster in the future than it has in the past, with revenues expected to display 2.0% annualised growth until the end of 2024. If achieved, this would be a much better result than the 8.4% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 8.8% per year. Although Verimatrix's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Verimatrix's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

At least one of Verimatrix's dual analysts has provided estimates out to 2026, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Verimatrix you should know about.

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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.

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