Cantaloupe, Inc. Just Recorded A 100% EPS Beat: Here's What Analysts Are Forecasting Next

Cantaloupe, Inc. (NASDAQ:CTLP) shareholders are probably feeling a little disappointed, since its shares fell 8.1% to US$6.28 in the week after its latest second-quarter results. Revenues of US$65m fell slightly short of expectations, but earnings were a definite bright spot, with statutory per-share profits of US$0.04 an impressive 100% ahead of estimates. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Cantaloupe

Taking into account the latest results, the consensus forecast from Cantaloupe's five analysts is for revenues of US$275.7m in 2024. This reflects a notable 9.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to descend 19% to US$0.16 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$277.5m and earnings per share (EPS) of US$0.13 in 2024. Although the revenue estimates have not really changed, we can see there's been a great increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 10% to US$10.88. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Cantaloupe at US$13.00 per share, while the most bearish prices it at US$10.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Cantaloupe's rate of growth is expected to accelerate meaningfully, with the forecast 19% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 12% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.7% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Cantaloupe is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Cantaloupe following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Cantaloupe going out to 2025, and you can see them free on our platform here.

We also provide an overview of the Cantaloupe Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.