Cyxtera Technologies, Inc. (NASDAQ:CYXT) Second-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

It's been a mediocre week for Cyxtera Technologies, Inc. (NASDAQ:CYXT) shareholders, with the stock dropping 15% to US$10.47 in the week since its latest second-quarter results. It was a pretty bad result overall; while revenues were in line with expectations at US$184m, statutory losses exploded to US$0.27 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Cyxtera Technologies

Taking into account the latest results, the current consensus from Cyxtera Technologies' eight analysts is for revenues of US$744.6m in 2022, which would reflect a modest 3.1% increase on its sales over the past 12 months. Losses are expected to be contained, narrowing 19% from last year to US$0.91. Before this earnings announcement, the analysts had been modelling revenues of US$745.1m and losses of US$0.86 per share in 2022. So it's pretty clear consensus is mixed on Cyxtera Technologies 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 held steady at US$14.71, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's 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. Currently, the most bullish analyst values Cyxtera Technologies at US$20.00 per share, while the most bearish prices it at US$13.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Cyxtera Technologies' growth to accelerate, with the forecast 6.4% annualised growth to the end of 2022 ranking favourably alongside historical growth of 4.2% per annum over the past year. Compare this with other companies in the same industry, which are forecast to see revenue growth of 12% annually. So it's clear that despite the acceleration in growth, Cyxtera Technologies is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Cyxtera Technologies. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Cyxtera Technologies' revenues are expected to perform worse 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Cyxtera Technologies analysts - 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 Cyxtera Technologies , and understanding them should be part of your investment process.

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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.