Boxlight Corporation (NASDAQ:BOXL) Just Reported Earnings, And Analysts Cut Their Target Price

Simply Wall St
March 21, 2022
Source: Shutterstock

It's been a pretty great week for Boxlight Corporation (NASDAQ:BOXL) shareholders, with its shares surging 14% to US$1.24 in the week since its latest yearly results. The results don't look great, especially considering that statutory losses grew 10% toUS$0.25 per share. Revenues of US$185,177,000 did beat expectations by 2.1%, 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Boxlight

NasdaqCM:BOXL Earnings and Revenue Growth March 21st 2022

Taking into account the latest results, the consensus forecast from Boxlight's three analysts is for revenues of US$250.1m in 2022, which would reflect a major 35% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 91% to US$0.02. Before this latest report, the consensus had been expecting revenues of US$232.6m and US$0.01 per share in losses. While this year's revenue estimates increased, there was also a massive increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

Spiting the revenue upgrading, the average price target fell 17% to US$4.00, clearly signalling that higher forecast losses are a valuation concern.

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. We can infer from the latest estimates that forecasts expect a continuation of Boxlight'shistorical trends, as the 35% annualised revenue growth to the end of 2022 is roughly in line with the 43% annual revenue growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.7% per year. So although Boxlight is expected to maintain its revenue growth rate, it's definitely 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Boxlight going out to 2023, and you can see them free on our platform here.

Even so, be aware that Boxlight is showing 3 warning signs in our investment analysis , you should know about...

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.