Cellebrite DI Ltd. (NASDAQ:CLBT) Released Earnings Last Week And Analysts Lifted Their Price Target To US$13.17

Shareholders will be ecstatic, with their stake up 21% over the past week following Cellebrite DI Ltd.'s (NASDAQ:CLBT) latest annual results. Revenues of US$325m beat expectations by a respectable 2.3%, although statutory losses per share increased. Cellebrite DI lost US$0.43, which was 43% more than what the analysts had included in their models. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Cellebrite DI after the latest results.

View our latest analysis for Cellebrite DI

Taking into account the latest results, the most recent consensus for Cellebrite DI from seven analysts is for revenues of US$376.8m in 2024. If met, it would imply a notable 16% increase on its revenue over the past 12 months. Cellebrite DI is also expected to turn profitable, with statutory earnings of US$0.16 per share. In the lead-up to this report, the analysts had been modelling revenues of US$371.7m and earnings per share (EPS) of US$0.15 in 2024. So the consensus seems to have become somewhat more optimistic on Cellebrite DI's earnings potential following these results.

The consensus price target rose 30% to US$13.17, suggesting that higher earnings estimates flow through to the stock's valuation as well. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Cellebrite DI analyst has a price target of US$15.00 per share, while the most pessimistic values it at US$12.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. We can infer from the latest estimates that forecasts expect a continuation of Cellebrite DI'shistorical trends, as the 16% annualised revenue growth to the end of 2024 is roughly in line with the 15% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 13% per year. So it's pretty clear that Cellebrite DI is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Cellebrite DI's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 estimates - from multiple Cellebrite DI analysts - going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Cellebrite DI 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.