US$4.00: That's What Analysts Think Rekor Systems, Inc. (NASDAQ:REKR) Is Worth After Its Latest Results

Explore Rekor Systems's Fair Values from the Community and select yours

Investors in Rekor Systems, Inc. (NASDAQ:REKR) had a good week, as its shares rose 4.7% to close at US$1.11 following the release of its quarterly results. Revenues came in at US$12m, in line with expectations, while statutory losses per share were substantially higher than expected, at US$0.07 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

After the latest results, the two analysts covering Rekor Systems are now predicting revenues of US$49.1m in 2025. If met, this would reflect a notable 8.3% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 36% to US$0.27. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$49.0m and losses of US$0.25 per share in 2025. So it's pretty clear consensus is mixed on Rekor Systems after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a pronounced increase to per-share loss expectations.

See our latest analysis for Rekor Systems

With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 11% to US$4.00, with the analysts signalling that growing losses would be a definite concern.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Rekor Systems' revenue growth is expected to slow, with the forecast 17% annualised growth rate until the end of 2025 being well below the historical 37% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 13% per year. Even after the forecast slowdown in growth, it seems obvious that Rekor Systems is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased 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. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for Rekor Systems you should be aware of, and 1 of them can't be ignored.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.