Identiv, Inc. (NASDAQ:INVE) Analysts Just Slashed This Year's Estimates

Market forces rained on the parade of Identiv, Inc. (NASDAQ:INVE) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

After the downgrade, the consensus from Identiv's four analysts is for revenues of US$102m in 2024, which would reflect an uncomfortable 9.4% decline in sales compared to the last year of performance. Per-share losses are expected to explode, reaching US$0.57 per share. However, before this estimates update, the consensus had been expecting revenues of US$118m and US$0.22 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.

See our latest analysis for Identiv

The consensus price target fell 5.3% to US$8.88, implicitly signalling that lower earnings per share are a leading indicator for Identiv's valuation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that sales are expected to reverse, with a forecast 12% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 8.8% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.2% per year. It's pretty clear that Identiv's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Identiv. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Identiv.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Identiv analysts - going out to 2026, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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