Here's What Analysts Are Forecasting For ACV Auctions Inc. (NASDAQ:ACVA) After Its Annual Results

It's been a pretty great week for ACV Auctions Inc. (NASDAQ:ACVA) shareholders, with its shares surging 16% to US$16.52 in the week since its latest annual results. The results overall were pretty much dead in line with analyst forecasts; revenues were US$481m and statutory losses were US$0.47 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for ACV Auctions

Taking into account the latest results, the most recent consensus for ACV Auctions from twelve analysts is for revenues of US$613.8m in 2024. If met, it would imply a huge 28% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 29% to US$0.33. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$584.3m and losses of US$0.28 per share in 2024. While this year's revenue estimates increased, there was also a noticeable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The consensus price target stayed unchanged at US$20.69, seeming to suggest that higher forecast losses are not expected to have a long term impact on the valuation. 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 ACV Auctions, with the most bullish analyst valuing it at US$24.00 and the most bearish at US$15.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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 can infer from the latest estimates that forecasts expect a continuation of ACV Auctions'historical trends, as the 28% annualised revenue growth to the end of 2024 is roughly in line with the 23% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.5% per year. So although ACV Auctions is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for ACV Auctions going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for ACV Auctions that you need to be mindful of.

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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.