Genasys Inc. (NASDAQ:GNSS) Analysts Are Cutting Their Estimates: Here's What You Need To Know

The analysts might have been a bit too bullish on Genasys Inc. (NASDAQ:GNSS), given that the company fell short of expectations when it released its yearly results last week. Revenues missed expectations somewhat, coming in at US$24m, but statutory earnings fell catastrophically short, with a loss of US$0.72 some 26% larger than what the analysts had predicted. 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.

See our latest analysis for Genasys

Taking into account the latest results, the consensus forecast from Genasys' two analysts is for revenues of US$57.0m in 2025. This reflects a huge 137% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 59% to US$0.29. Before this earnings announcement, the analysts had been modelling revenues of US$62.6m and losses of US$0.12 per share in 2025. While this year's revenue estimates dropped there was also a very substantial increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The analysts lifted their price target 7.0% to US$5.08, implicitly signalling that lower earnings per share are not expected to have a longer-term impact on the stock's value.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Genasys' past performance and to peers in the same industry. For example, we noticed that Genasys' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 137% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 0.3% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 8.5% per year. So it looks like Genasys is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Genasys. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will 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.

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 analyst estimates for Genasys going out as far as 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Genasys that you need to take into consideration.

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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.