Xometry, Inc. (NASDAQ:XMTR) Just Reported, And Analysts Assigned A US$57.43 Price Target

By
Simply Wall St
Published
May 13, 2022
NasdaqGS:XMTR
Source: Shutterstock

It's been a mediocre week for Xometry, Inc. (NASDAQ:XMTR) shareholders, with the stock dropping 13% to US$30.35 in the week since its latest quarterly results. Revenues were a bright spot, with US$84m in sales arriving 2.5% ahead of expectations, although statutory earnings didn't fare nearly so well, recording a loss of US$0.43, some 2.2% below consensus predictions. 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. 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 Xometry

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NasdaqGS:XMTR Earnings and Revenue Growth May 13th 2022

Taking into account the latest results, the current consensus from Xometry's eight analysts is for revenues of US$396.9m in 2022, which would reflect a huge 82% increase on its sales over the past 12 months. Per-share losses are predicted to creep up to US$1.37. Before this latest report, the consensus had been expecting revenues of US$396.6m and US$1.31 per share in losses. So it's pretty clear consensus is mixed on Xometry after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a modest increase to per-share loss expectations.

The consensus price target fell 12% to US$57.43per share, with the analysts clearly concerned by ballooning losses. 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 Xometry at US$100.00 per share, while the most bearish prices it at US$43.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. The analysts are definitely expecting Xometry's growth to accelerate, with the forecast 122% annualised growth to the end of 2022 ranking favourably alongside historical growth of 54% per annum over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 14% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Xometry is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. 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 Xometry's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Xometry going out to 2024, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Xometry , and understanding these should be part of your investment process.

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