Analysts Have Made A Financial Statement On Cambium Networks Corporation's (NASDAQ:CMBM) Yearly Report

It's been a good week for Cambium Networks Corporation (NASDAQ:CMBM) shareholders, because the company has just released its latest full-year results, and the shares gained 3.6% to US$4.62. Revenues were in line with expectations, at US$220m, while statutory losses ballooned to US$2.31 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Cambium Networks

Taking into account the latest results, the current consensus from Cambium Networks' six analysts is for revenues of US$225.6m in 2024. This would reflect a satisfactory 2.4% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 73% to US$0.61. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$226.2m and losses of US$0.43 per share in 2024. So it's pretty clear the analysts have mixed opinions on Cambium Networks even after this update; although they reconfirmed their revenue numbers, it came at the cost of a considerable increase to per-share losses.

The consensus price target held steady at US$7.06, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Cambium Networks at US$9.75 per share, while the most bearish prices it at US$5.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Cambium Networks' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Cambium Networks'historical trends, as the 2.4% annualised revenue growth to the end of 2024 is roughly in line with the 2.5% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 3.6% annually. So it's pretty clear that Cambium Networks is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Cambium Networks' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$7.06, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Cambium Networks analysts - going out to 2025, and you can see them free on our platform here.

You can also see whether Cambium Networks is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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.