Last week, you might have seen that Corsair Gaming, Inc. (NASDAQ:CRSR) released its first-quarter result to the market. The early response was not positive, with shares down 6.8% to US$10.79 in the past week. Revenues fell 7.0% short of expectations, at US$337m. Earnings correspondingly dipped, with Corsair Gaming reporting a statutory loss of US$0.12 per share, whereas the analysts had previously modelled a profit in this period. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the latest results, Corsair Gaming's six analysts are now forecasting revenues of US$1.51b in 2024. This would be a credible 4.5% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Corsair Gaming forecast to report a statutory profit of US$0.16 per share. In the lead-up to this report, the analysts had been modelling revenues of US$1.53b and earnings per share (EPS) of US$0.19 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.
It might be a surprise to learn that the consensus price target fell 9.8% to US$15.86, with the analysts clearly linking lower forecast earnings to the performance of the stock price. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Corsair Gaming analyst has a price target of US$18.00 per share, while the most pessimistic values it at US$13.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 6.0% growth on an annualised basis. That is in line with its 5.5% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.0% annually. So although Corsair Gaming is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Corsair Gaming. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 Corsair Gaming'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 estimates - from multiple Corsair Gaming analysts - going out to 2026, and you can see them free on our platform here.
You can also see whether Corsair Gaming is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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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.