Vislink Technologies, Inc. (NASDAQ:VISL) Just Reported Earnings, And Analysts Cut Their Target Price

Shareholders might have noticed that Vislink Technologies, Inc. (NASDAQ:VISL) filed its annual result this time last week. The early response was not positive, with shares down 2.7% to US$1.08 in the past week. The results don't look great, especially considering that statutory losses grew 322% toUS$0.38 per share. Revenues of US$34m did beat expectations by 4.3%, but it looks like a bit of a cold comfort. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

See our latest analysis for Vislink Technologies

Taking into account the latest results, the most recent consensus for Vislink Technologies from lone analyst is for revenues of US$37.7m in 2022 which, if met, would be a notable 11% increase on its sales over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 78% to US$0.08. Before this latest report, the consensus had been expecting revenues of US$36.3m and US$0.05 per share in losses. So it's pretty clear the analyst has mixed opinions on Vislink Technologies even after this update; although they upped their revenue numbers, it came at the cost of a very substantial increase in per-share losses.

It will come as no surprise that expanding losses caused the consensus price target to fall 99% to US$2.00with the analyst implicitly ranking ongoing losses as a greater concern than growing revenues.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that Vislink Technologies is forecast to grow faster in the future than it has in the past, with revenues expected to display 11% annualised growth until the end of 2022. If achieved, this would be a much better result than the 2.4% annual decline 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 6.9% per year. So it looks like Vislink Technologies 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 Vislink Technologies. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. Furthermore, the analyst 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 analyst estimates for Vislink Technologies going out as far as 2023, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Vislink Technologies 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.