Inspirato Incorporated (NASDAQ:ISPO) Just Reported Earnings, And Analysts Cut Their Target Price

Last week saw the newest first-quarter earnings release from Inspirato Incorporated (NASDAQ:ISPO), an important milestone in the company's journey to build a stronger business. It was an okay result overall, with revenues coming in at US$80m, roughly what the analysts had been expecting. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Inspirato

After the latest results, the consensus from Inspirato's dual analysts is for revenues of US$289.5m in 2024, which would reflect a not inconsiderable 8.9% decline in revenue compared to the last year of performance. The loss per share is expected to greatly reduce in the near future, narrowing 61% to US$5.07. Before this earnings announcement, the analysts had been modelling revenues of US$291.4m and losses of US$6.60 per share in 2024. Although the revenue estimates have not really changed Inspirato'sfuture looks a little different to the past, with a considerable decrease in the loss per share forecasts in particular.

The consensus price target fell 11% to US$16.00despite the forecast for smaller losses next year. It looks like the ongoing lack of profitability is starting to weigh on valuations.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 12% by the end of 2024. This indicates a significant reduction from annual growth of 21% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 9.7% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Inspirato is expected to lag the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 analyst estimates for Inspirato going out as far as 2025, and you can see them free on our platform here.

Plus, you should also learn about the 5 warning signs we've spotted with Inspirato (including 1 which shouldn't be ignored) .

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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.