it’s been a good week for AudioEye, Inc. (NASDAQ: AEYE) as the company just released its latest annual results and stocks gained 3.4% to US $ 28.50. Sales reached $ 20 million, as expected, although the company reported a statutory loss per share of $ 0.77, slightly lower than analysts’ forecast. Following the result, analysts updated their earnings model, and it would be good to know if they think there has been a strong change in the outlook for the company, or if it is like habit. Readers will be happy to know that we’ve aggregated the latest statutory forecast to see if analysts have changed their minds on AudioEye after the latest results. NasdaqCM: AEYE Profits and Revenue Growth March 14, 2021
Based on the latest results, the current consensus of the two AudioEye analysts is US $ 31.8 million in revenue in 2021, which would reflect a substantial 55% increase in sales over the past 12 months. last months. Losses are expected to decrease, falling 16% from last year to US $ 0.65. Prior to this latest report, the consensus expected revenue of $ 31.8 million and $ 0.37 per share in losses. So it’s pretty clear that analysts have mixed opinions on AudioEye even after this update; although they have reconfirmed their income figures, it has come at the cost of an unfortunate increase in losses per share.
As a result, there have been no major changes from the consensus price target of US $ 38.00, with analysts implicitly confirming that the business appears to be performing as expected, despite higher expected losses.
Looking at the big picture now, one of the ways we can understand these forecasts is to see how they stack up against both past performance and industry growth estimates. We can infer from the latest estimates that the forecast expects AudioEye’s historical trends to continue, as the annualized revenue growth of 55% through the end of 2021 is roughly in line with the annual revenue growth of 60% in the last five years. Compare that with the industry as a whole, whose analysts’ estimates (overall) suggest revenues will grow by 13% per year. So it’s pretty clear that AudioEye is expected to grow much faster than its industry.
The bottom line
The most important thing to note is the forecast of an increase in losses next year, suggesting that all may not be well at AudioEye. Fortunately, they also reconfirmed their revenue figures, suggesting that sales are moving according to expectations – and our data suggests that revenue is expected to grow faster than the industry as a whole. The consensus price target has not really changed, suggesting that the intrinsic value of the company has not undergone any major changes with the latest estimates.
That said, the company’s long-term earnings trajectory is much bigger than next year. We have analyst estimates for AudioEye through 2022, and you can view them for free on our platform here.
In addition, you should also educate yourself about the 3 warning signs we spotted with AudioEye.
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