OMNIQ Corp. (NASDAQ:OMQS) Just Reported, And Analysts Assigned A US$13.00 Price Target

Shareholders might have noticed that OMNIQ Corp. (NASDAQ:OMQS) filed its quarterly result this time last week. The early response was not positive, with shares down 4.1% to US$5.92 in the past week. The results don't look great, especially considering that statutory losses grew 65% toUS$0.52 per share. Revenues of US$27m did beat expectations by 3.5%, 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 the opportunities and risks within the US IT industry.

Following the latest results, OMNIQ's twin analysts are now forecasting revenues of US$124.0m in 2023. This would be a major 21% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 89% to US$0.18. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$126.0m and losses of US$0.21 per share in 2023. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading revenues and making a cut to losses per share in particular.

Even with the lower forecast losses, the analysts lowered their valuations, with the average price target falling 13% to US$13.00. It looks likethe analysts have become less optimistic about the overall business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the OMNIQ's past performance and to peers in the same industry. The analysts are definitely expecting OMNIQ's growth to accelerate, with the forecast 17% annualised growth to the end of 2023 ranking favourably alongside historical growth of 10% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 10% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that OMNIQ is expected to grow much faster than its 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. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of OMNIQ's future valuation.

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. At least one analyst has provided forecasts out to 2023, which can be seen for free on our platform here.

Plus, you should also learn about the 4 warning signs we've spotted with OMNIQ (including 2 which 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.