Earnings Update: Here's Why Analysts Just Lifted Their Airgain, Inc. (NASDAQ:AIRG) Price Target To US$8.00

There's been a notable change in appetite for Airgain, Inc. (NASDAQ:AIRG) shares in the week since its quarterly report, with the stock down 15% to US$6.39. The results overall were pretty much dead in line with analyst forecasts; revenues were US$15m and statutory losses were US$0.23 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Airgain

Taking into account the latest results, the consensus forecast from Airgain's three analysts is for revenues of US$62.6m in 2024. This reflects a notable 18% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 24% to US$0.83. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$63.0m and losses of US$0.68 per share in 2024. So it's pretty clear the analysts have mixed opinions on Airgain even after this update; although they reconfirmed their revenue numbers, it came at the cost of a sizeable expansion in per-share losses.

Despite expectations of heavier losses next year,the analysts have lifted their price target 6.7% to US$8.00, perhaps implying these losses are not expected to be recurring over the long term.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Airgain's rate of growth is expected to accelerate meaningfully, with the forecast 39% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 3.4% p.a. 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 7.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Airgain is expected to grow much faster than its industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Airgain. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Airgain. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Airgain analysts - going out to 2025, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 4 warning signs for Airgain (1 doesn't sit too well with us) 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.