The NV5 Global, Inc. (NASDAQ:NVEE) Annual Results Are Out And Analysts Have Published New Forecasts

Shareholders might have noticed that NV5 Global, Inc. (NASDAQ:NVEE) filed its annual result this time last week. The early response was not positive, with shares down 6.6% to US$103 in the past week. It was a credible result overall, with revenues of US$862m and statutory earnings per share of US$2.88 both in line with analyst estimates, showing that NV5 Global is executing in line with expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for NV5 Global

Taking into account the latest results, the consensus forecast from NV5 Global's eight analysts is for revenues of US$931.6m in 2024. This reflects a decent 8.1% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$2.85, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$928.7m and earnings per share (EPS) of US$3.24 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$125, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic NV5 Global analyst has a price target of US$165 per share, while the most pessimistic values it at US$104. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await NV5 Global shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that NV5 Global's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 8.1% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.4% annually. So it's pretty clear that, while NV5 Global'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 take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected 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 NV5 Global going out to 2025, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for NV5 Global 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.