A week ago, Vislink Technologies, Inc. (NASDAQ:VISL) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. Revenue crushed expectations at US$7.2m, beating expectations by 26%. Vislink Technologies reported a statutory loss of US$0.83 per share, which - although not amazing - was much smaller than the analyst predicted. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Vislink Technologies
Taking into account the latest results, Vislink Technologies' lone analyst currently expect revenues in 2024 to be US$27.0m, approximately in line with the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 45% to US$2.83. Before this earnings announcement, the analyst had been modelling revenues of US$24.9m and losses of US$2.75 per share in 2024. So it's pretty clear consensus is mixed on Vislink Technologies after the new consensus numbers; while the analyst lifted revenue numbers, they also administered a moderate increase in per-share loss expectations.
Spiting the revenue upgrading, the average price target fell 29% to US$8.50, clearly signalling that higher forecast losses are a valuation concern.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would also point out that the forecast 0.3% annualised revenue decline to the end of 2024 is better than the historical trend, which saw revenues shrink 4.1% annually over the past five years Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 4.4% annually. So while a broad number of companies are forecast to grow, unfortunately Vislink Technologies is expected to see its revenue affected worse than other companies in the industry.
The Bottom Line
The most important thing to take away is that the analyst increased their loss per share estimates for next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Vislink Technologies' future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on Vislink Technologies. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.
And what about risks? Every company has them, and we've spotted 2 warning signs for Vislink Technologies (of which 1 is a bit unpleasant!) you should know about.
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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.
