AvidXchange Holdings, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

There's been a notable change in appetite for AvidXchange Holdings, Inc. (NASDAQ:AVDX) shares in the week since its annual report, with the stock down 18% to US$7.60. Revenues were US$439m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.04, an impressive 41% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for AvidXchange Holdings

Taking into account the latest results, the most recent consensus for AvidXchange Holdings from 16 analysts is for revenues of US$457.9m in 2025. If met, it would imply a reasonable 4.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 75% to US$0.07. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$483.1m and earnings per share (EPS) of US$0.11 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.

The consensus price target fell 20% to US$9.63, with the weaker earnings outlook clearly leading valuation estimates. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on AvidXchange Holdings, with the most bullish analyst valuing it at US$13.00 and the most bearish at US$7.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. We would highlight that AvidXchange Holdings' revenue growth is expected to slow, with the forecast 4.3% annualised growth rate until the end of 2025 being well below the historical 21% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.2% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than AvidXchange Holdings.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for AvidXchange Holdings. On the negative side, they also downgraded their revenue estimates, and 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple AvidXchange Holdings analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for AvidXchange Holdings that you need to take into consideration.

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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.