ShiftPixy Inc’s (NASDAQ:PIXY) Profit Outlook

ShiftPixy Inc’s (NASDAQ:PIXY): ShiftPixy, Inc. provides employment services for businesses; and workers in shift or other part-time/temporary positions in the United States. With the latest financial year loss of -US$7.49m and a trailing-twelve month of -US$12.97m, the US$84.96m market-cap amplifies its loss by moving further away from its breakeven target. As path to profitability is the topic on PIXY’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for PIXY.

View out our latest analysis for ShiftPixy

Expectation from Professional Services analysts is PIXY is on the verge of breakeven. They expect the company to post a final loss in -1, before turning a profit of US$0 in . Therefore, PIXY is expected to breakeven roughly a few months from now. In order to meet this breakeven date, I calculated the rate at which PIXY must grow year-on-year. It turns out an average annual growth rate of 21.44% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

NasdaqCM:PIXY Past Future Earnings June 28th 18
NasdaqCM:PIXY Past Future Earnings June 28th 18

I’m not going to go through company-specific developments for PIXY given that this is a high-level summary, though, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before I wrap up, there’s one issue worth mentioning. PIXY currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are key fundamentals of PIXY which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at PIXY, take a look at PIXY’s company page on Simply Wall St. I’ve also put together a list of key aspects you should further research:

  1. Historical Track Record: What has PIXY’s performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on ShiftPixy’s board and the CEO’s back ground.
  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.