The Glimpse Group, Inc. (NASDAQ:VRAR) Just Reported, And Analysts Assigned A US$2.73 Price Target

As you might know, The Glimpse Group, Inc. (NASDAQ:VRAR) just kicked off its latest quarterly results with some very strong numbers. Results overall were solid, with revenues arriving 3.5% better than analyst forecasts at US$3.1m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.01 per share, were 3.5% smaller than the analyst expected. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

Check out our latest analysis for Glimpse Group

Taking into account the latest results, the sole analyst covering Glimpse Group provided consensus estimates of US$11.9m revenue in 2024, which would reflect a perceptible 5.8% decline over the past 12 months. Losses are predicted to fall substantially, shrinking 69% to US$0.43. Before this latest report, the consensus had been expecting revenues of US$16.5m and US$0.53 per share in losses. We can see there's definitely been a change in sentiment in this update, with the analyst administering a meaningful downgrade to next year's revenue estimates, while at the same time reducing their loss estimates.

The consensus price target fell 41% to US$2.73, with the dip in revenue estimates clearly souring sentiment, despite the forecast reduction in losses.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 7.7% by the end of 2024. This indicates a significant reduction from annual growth of 61% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 9.5% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Glimpse Group is expected to lag the wider industry.

The Bottom Line

The most obvious conclusion is that the analyst made no changes to their forecasts for a loss next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Even so, earnings are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Glimpse Group's future valuation.

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 2025, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 5 warning signs for Glimpse Group (2 are concerning!) that 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.