Shareholders will be ecstatic, with their stake up 29% over the past week following Summit Wireless Technologies, Inc.'s (NASDAQ:WISA) latest quarterly results. Revenues of US$607k crushed expectations, although expenses also blew out, with the company reporting a statutory loss per share of US$0.39, 30% bigger than analysts expected. 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.
Following the latest results, Summit Wireless Technologies' two analysts are now forecasting revenues of US$6.70m in 2021. This would be a substantial 273% improvement in sales compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 70% to US$1.14. Before this earnings announcement, the analysts had been modelling revenues of US$6.70m and losses of US$1.12 per share in 2021.
The consensus price target rose 6.3% to US$8.50, with the analysts increasing their valuations as the business executes in line with forecasts.
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. It's clear from the latest estimates that Summit Wireless Technologies' rate of growth is expected to accelerate meaningfully, with the forecast 273% revenue growth noticeably faster than its historical growth of 3.0%p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.4% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Summit Wireless Technologies to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed 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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Summit Wireless Technologies going out as far as 2024, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 6 warning signs for Summit Wireless Technologies (1 is significant) you should be aware of.
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