US$2.85: That's What Analysts Think VerifyMe, Inc. (NASDAQ:VRME) Is Worth After Its Latest Results

It's been a pretty great week for VerifyMe, Inc. (NASDAQ:VRME) shareholders, with its shares surging 14% to US$1.36 in the week since its latest yearly results. The results overall were pretty much dead in line with analyst forecasts; revenues were US$25m and statutory losses were US$0.35 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for VerifyMe

Taking into account the latest results, the consensus forecast from VerifyMe's two analysts is for revenues of US$27.8m in 2024. This reflects a notable 10% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 42% to US$0.20. Before this latest report, the consensus had been expecting revenues of US$28.1m and US$0.18 per share in losses. Overall it looks as though the analysts were a bit mixed on the latest consensus updates. Although revenue forecasts held steady, the consensus also made a moderate increase in its losses per share forecasts.

The consensus price target fell 19% to US$2.85per share, with the analysts clearly concerned by ballooning losses.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that VerifyMe's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 10% growth on an annualised basis. This is compared to a historical growth rate of 81% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.4% per year. Even after the forecast slowdown in growth, it seems obvious that VerifyMe is also 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of VerifyMe's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for VerifyMe going out as far as 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with VerifyMe .

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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.