Stock Analysis

Analysts Have Made A Financial Statement On Vivint Smart Home, Inc.'s (NYSE:VVNT) Yearly Report

  •  Updated
NYSE:VVNT
Source: Shutterstock

Last week, you might have seen that Vivint Smart Home, Inc. (NYSE:VVNT) released its annual result to the market. The early response was not positive, with shares down 9.6% to US$17.00 in the past week. It was an okay result overall, with revenues coming in at US$1.3b, roughly what the analysts had been expecting. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. 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 Vivint Smart Home

earnings-and-revenue-growth
NYSE:VVNT Earnings and Revenue Growth February 27th 2021

Taking into account the latest results, the current consensus from Vivint Smart Home's six analysts is for revenues of US$1.40b in 2021, which would reflect a notable 11% increase on its sales over the past 12 months. Per-share losses are supposed to see a sharp uptick, reaching US$2.83. Before this latest report, the consensus had been expecting revenues of US$1.39b and US$2.14 per share in losses. So it's pretty clear the analysts have mixed opinions on Vivint Smart Home even after this update; although they reconfirmed their revenue numbers, it came at the cost of a regrettable increase in per-share losses.

The consensus price target held steady at US$24.33, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Vivint Smart Home, with the most bullish analyst valuing it at US$34.00 and the most bearish at US$20.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. Next year brings more of the same, according to the analysts, with revenue forecast to grow 11%, in line with its 11% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 23% per year. So although Vivint Smart Home is expected to maintain its revenue growth rate, it's forecast to grow slower 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. The consensus price target held steady at US$24.33, 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. We have forecasts for Vivint Smart Home going out to 2023, and you can see them free on our platform here.

It is also worth noting that we have found 4 warning signs for Vivint Smart Home (1 makes us a bit uncomfortable!) that you need to take into consideration.

When trading Vivint Smart Home or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


Valuation is complex, but we're helping make it simple.

Find out whether Vivint Smart Home is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis