Mawson Infrastructure Group, Inc. (NASDAQ:MIGI) Just Reported And Analysts Have Been Cutting Their Estimates

Mawson Infrastructure Group, Inc. (NASDAQ:MIGI) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasts think of the company following this report. Revenues came in 55% better than analyst models expected, at US$28m, although statutory losses ballooned 64% to US$0.27, which is much worse than what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

Check out our latest analysis for Mawson Infrastructure Group

Taking into account the latest results, the consensus forecast from Mawson Infrastructure Group's one analyst is for revenues of US$89.7m in 2023, which would reflect a modest 2.6% improvement in sales compared to the last 12 months. Losses are expected to be contained, narrowing 11% from last year to US$0.35. Yet prior to the latest earnings, the analyst had been forecasting revenues of US$97.8m and losses of US$0.19 per share in 2023. While next year's revenue estimates dropped there was also a very substantial increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The average price target fell 17% to US$2.50, implicitly signalling that lower earnings per share are a leading indicator for Mawson Infrastructure Group's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Mawson Infrastructure Group's past performance and to peers in the same industry. We would highlight that Mawson Infrastructure Group's revenue growth is expected to slow, with the forecast 2.1% annualised growth rate until the end of 2023 being well below the historical 95% p.a. growth over the last three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 13% annually. Factoring in the forecast slowdown in growth, it seems obvious that Mawson Infrastructure Group is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analyst increased their loss per share estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 analyst estimates for Mawson Infrastructure Group going out as far as 2024, and you can see them free on our platform here.

Even so, be aware that Mawson Infrastructure Group is showing 5 warning signs in our investment analysis , and 2 of those are concerning...

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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.