Cantaloupe, Inc. (NASDAQ:CTLP) Just Reported And Analysts Have Been Lifting Their Price Targets

It's been a mediocre week for Cantaloupe, Inc. (NASDAQ:CTLP) shareholders, with the stock dropping 15% to US$6.58 in the week since its latest full-year results. Results were overall in line with expectations, with the company breaking even at the statutory earnings per share (EPS) level on US$244m in revenue. 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.

Check out our latest analysis for Cantaloupe

Taking into account the latest results, the consensus forecast from Cantaloupe's five analysts is for revenues of US$277.9m in 2024. This reflects a meaningful 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 98,936% to US$0.14. In the lead-up to this report, the analysts had been modelling revenues of US$277.9m and earnings per share (EPS) of US$0.16 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 10% to US$10.88, suggesting the revised estimates are not indicative of a weaker long-term future for the business. 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 Cantaloupe, with the most bullish analyst valuing it at US$13.00 and the most bearish at US$10.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Cantaloupe's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 11% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.6% 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 to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Cantaloupe. Long-term earnings power is much more important than next year's profits. We have forecasts for Cantaloupe going out to 2025, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Cantaloupe .

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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.