Applied UV, Inc. (NASDAQ:AUVI) Analysts Are Pretty Bullish On The Stock After Recent Results

Shareholders might have noticed that Applied UV, Inc. (NASDAQ:AUVI) filed its quarterly result this time last week. The early response was not positive, with shares down 5.5% to US$1.73 in the past week. Revenues came in 61% better than analyst models expected, at US$5.9m, although statutory losses ballooned 66% to US$0.26, which is much worse than what was forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Applied UV

After the latest results, the three analysts covering Applied UV are now predicting revenues of US$19.0m in 2022. If met, this would reflect a meaningful 13% improvement in sales compared to the last 12 months. Losses are forecast to narrow 7.2% to US$0.73 per share. Before this earnings announcement, the analysts had been modelling revenues of US$16.4m and losses of US$0.65 per share in 2022. Ergo, there's been a clear change in sentiment, with the analysts lifting this year's revenue estimates, while at the same time increasing their loss per share numbers to reflect the cost of achieving this growth.

The average price target rose 16% to US$9.20, even thoughthe analysts have been updating their forecasts to show higher revenues and higher forecast losses. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Applied UV, with the most bullish analyst valuing it at US$10.40 and the most bearish at US$8.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Applied UV is an easy business to forecast or the the analysts are all using similar assumptions.

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. We would highlight that Applied UV's revenue growth is expected to slow, with the forecast 28% annualised growth rate until the end of 2022 being well below the historical 147% growth over the last year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.4% per year. So it's pretty clear that, while Applied UV's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Applied UV. 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 analysts believes the intrinsic value of the business is likely to improve over time.

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 Applied UV going out to 2024, and you can see them free on our platform here..

It is also worth noting that we have found 5 warning signs for Applied UV (2 are a bit concerning!) that you need to take into consideration.

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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.