Analyst Estimates: Here's What Brokers Think Of SiTime Corporation (NASDAQ:SITM) After Its Second-Quarter Report

Shareholders of SiTime Corporation (NASDAQ:SITM) will be pleased this week, given that the stock price is up 13% to US$127 following its latest second-quarter results. The results don't look great, especially considering that statutory losses grew 13% toUS$1.16 per share. Revenues of US$43,866,000 did beat expectations by 7.0%, but it looks like a bit of a cold comfort. 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.

Check out our latest analysis for SiTime

After the latest results, the five analysts covering SiTime are now predicting revenues of US$190.5m in 2024. If met, this would reflect a sizeable 23% improvement in revenue compared to the last 12 months. Losses are forecast to narrow 2.7% to US$3.94 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$180.8m and losses of US$3.62 per share in 2024. So it's pretty clear consensus is mixed on SiTime after the new consensus numbers; while the analysts lifted revenue numbers, they also administered a modest increase to per-share loss expectations.

The consensus price target stayed unchanged at US$138, seeming to suggest that higher forecast losses are not expected to have a long term impact on the valuation. 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 SiTime, with the most bullish analyst valuing it at US$175 and the most bearish at US$90.00 per share. 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 SiTime's past performance and to peers in the same industry. The analysts are definitely expecting SiTime's growth to accelerate, with the forecast 51% annualised growth to the end of 2024 ranking favourably alongside historical growth of 16% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect SiTime to grow faster than the wider 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, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for SiTime going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for SiTime 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.