Earnings Update: Clarivate Plc (NYSE:CLVT) Just Reported Its Second-Quarter Results And Analysts Are Updating Their Forecasts

One of the biggest stories of last week was how Clarivate Plc (NYSE:CLVT) shares plunged 20% in the week since its latest second-quarter results, closing yesterday at US$3.62. The results don't look great, especially considering that statutory losses grew 340% toUS$0.11 per share. Revenues of US$621m did beat expectations by 5.4%, but it looks like a bit of a cold comfort. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the nine analysts covering Clarivate provided consensus estimates of US$2.38b revenue in 2025, which would reflect a noticeable 4.8% decline over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 41% to US$0.38. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$2.36b and losses of US$0.23 per share in 2025. So it's pretty clear the analysts have mixed opinions on Clarivate even after this update; although they reconfirmed their revenue numbers, it came at the cost of a very substantial increase in per-share losses.

Check out our latest analysis for Clarivate

As a result, there was no major change to the consensus price target of US$5.23, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. 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. Currently, the most bullish analyst values Clarivate at US$7.00 per share, while the most bearish prices it at US$4.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 9.3% by the end of 2025. This indicates a significant reduction from annual growth of 15% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.7% annually for the foreseeable future. It's pretty clear that Clarivate's revenues are expected to perform substantially worse 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Clarivate's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$5.23, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Clarivate going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Clarivate that you should be aware 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.