Results: Integral Ad Science Holding Corp. Exceeded Expectations And The Consensus Has Updated Its Estimates

Shareholders might have noticed that Integral Ad Science Holding Corp. (NASDAQ:IAS) filed its quarterly result this time last week. The early response was not positive, with shares down 4.4% to US$11.32 in the past week. Integral Ad Science Holding beat expectations by 3.7% with revenues of US$89m. It also surprised on the earnings front, with an unexpected statutory profit of US$0.01 per share a nice improvement on the losses that the analysts forecast. 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 Integral Ad Science Holding

After the latest results, the eight analysts covering Integral Ad Science Holding are now predicting revenues of US$417.4m in 2022. If met, this would reflect a major 29% improvement in sales compared to the last 12 months. Earnings are expected to improve, with Integral Ad Science Holding forecast to report a statutory profit of US$0.063 per share. Before this earnings report, the analysts had been forecasting revenues of US$417.4m and earnings per share (EPS) of US$0.063 in 2022. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With no major changes to earnings forecasts, the consensus price target fell 14% to US$23.11, suggesting that the analysts might have previously been hoping for an earnings upgrade. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Integral Ad Science Holding, with the most bullish analyst valuing it at US$33.00 and the most bearish at US$17.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2022 brings more of the same, according to the analysts, with revenue forecast to display 40% growth on an annualised basis. That is in line with its 34% annual growth over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.2% per year. So it's pretty clear that Integral Ad Science Holding is forecast to grow substantially faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Integral Ad Science Holding's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Integral Ad Science Holding going out to 2024, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Integral Ad Science Holding that you should be aware of.

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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.