Creative Realities, Inc. (NASDAQ:CREX) Reported Earnings Last Week And Analysts Are Already Upgrading Their Estimates

As you might know, Creative Realities, Inc. (NASDAQ:CREX) last week released its latest quarterly, and things did not turn out so great for shareholders. Revenues missed expectations somewhat, coming in at US$11m, but statutory earnings fell catastrophically short, with a loss of US$0.75 some 582% larger than what the analysts had predicted. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the consensus forecast from Creative Realities' four analysts is for revenues of US$91.7m in 2026. This reflects a major 107% improvement in revenue compared to the last 12 months. Creative Realities is also expected to turn profitable, with statutory earnings of US$0.26 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$82.1m and earnings per share (EPS) of US$0.067 in 2026. So we can see there's been a pretty clear increase in sentiment following the latest results, with both revenues and earnings per share receiving a decent lift in the latest estimates.

See our latest analysis for Creative Realities

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$7.19, suggesting that the forecast performance does not have a long term impact on the company's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Creative Realities at US$10.00 per share, while the most bearish prices it at US$4.50. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Creative Realities' past performance and to peers in the same industry. The analysts are definitely expecting Creative Realities' growth to accelerate, with the forecast 79% annualised growth to the end of 2026 ranking favourably alongside historical growth of 22% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Creative Realities to grow faster than the wider 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 Creative Realities following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at US$7.19, with the latest estimates not enough to have an impact on their price targets.

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 Creative Realities going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Creative Realities 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.