N-able, Inc. (NYSE:NABL) Just Reported Second-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

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Last week, you might have seen that N-able, Inc. (NYSE:NABL) released its quarterly result to the market. The early response was not positive, with shares down 3.5% to US$7.48 in the past week. The results don't look great, especially considering that statutory losses grew 100% toUS$0.02 per share. Revenues of US$131m did beat expectations by 4.3%, but it looks like a bit of a cold comfort. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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After the latest results, the five analysts covering N-able are now predicting revenues of US$501.7m in 2025. If met, this would reflect a satisfactory 4.0% improvement in revenue compared to the last 12 months. The company is forecast to report a statutory loss of US$0.16 in 2025, a sharp decline from a profit over the last year. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$495.2m and losses of US$0.06 per share in 2025. While this year's revenue estimates held steady, there was also a massive increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

See our latest analysis for N-able

As a result, there was no major change to the consensus price target of US$9.19, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. 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. The most optimistic N-able analyst has a price target of US$10.00 per share, while the most pessimistic values it at US$8.75. This is a very narrow spread of estimates, implying either that N-able is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that N-able's revenue growth is expected to slow, with the forecast 8.2% annualised growth rate until the end of 2025 being well below the historical 10% 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 N-able is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at N-able. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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. At Simply Wall St, we have a full range of analyst estimates for N-able going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for N-able 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.