Aspen Group, Inc. (NASDAQ:ASPU) Second-Quarter Results: Here's What Analysts Are Forecasting For This Year

Investors in Aspen Group, Inc. (NASDAQ:ASPU) had a good week, as its shares rose 3.0% to close at US$11.49 following the release of its second-quarter results. The results don't look great, especially considering that statutory losses grew 16% toUS$0.19 per share. Revenues of US$16,971,050 did beat expectations by 8.7%, but it looks like a bit of a cold comfort. 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 Aspen Group

Taking into account the latest results, the most recent consensus for Aspen Group from five analysts is for revenues of US$67.8m in 2021 which, if met, would be a meaningful 15% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 21% to US$0.30. Before this earnings announcement, the analysts had been modelling revenues of US$66.4m and losses of US$0.26 per share in 2021. While this year's revenue estimates increased, there was also a loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

There was no major change to the consensus price target of US$14.83, with growing revenues seemingly enough to offset the concern of growing 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. The most optimistic Aspen Group analyst has a price target of US$16.00 per share, while the most pessimistic values it at US$14.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Aspen Group's revenue growth is expected to slow, with forecast 15% increase next year well below the historical 39%p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 24% next year. Factoring in the forecast slowdown in growth, it seems obvious that Aspen Group is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Aspen Group. They also upgraded their revenue estimates for next year, even though sales are expected to grow slower than the wider industry. The consensus price target held steady at US$14.83, with the latest estimates not enough to have an impact on their price targets.

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

And what about risks? Every company has them, and we've spotted 2 warning signs for Aspen Group you should know about.

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This article by Simply Wall St is general in nature. 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.
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