It looks like a difficult time for comScore, Inc. (NASDAQ: SCOR), which released disappointing quarterly results a week ago that could have a noticeable impact on how the market views the stock. Revenue slightly exceeded expectations, reaching $ 88 million, but statutory profits fell catastrophically, with a loss of $ 0.28, some 75% more than analysts had predicted. 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. So we’ve collected the latest post-earnings statutory consensus estimates to see what might be in store for next year.
See our latest analysis for comScore
Following the latest results, the six comScore analysts are now forecasting revenues of US $ 367.3 million in 2021. This would represent an acceptable 3.2% improvement in sales from the past 12 months. Losses are expected to decrease, falling 12% from last year to US $ 0.98. Prior to this latest report, the consensus expected earnings of US $ 372.0 million and US $ 0.88 per share in losses. So it’s pretty clear that analysts have mixed opinions on comScore even after this update; although they reconfirmed their revenue figures, it came at the cost of a noticeable increase in losses per share.
As a result, there have been no major changes from the consensus price target of US $ 4.70, with analysts implicitly confirming that the company appears to be performing as expected, despite higher expected losses. It might also be instructive to look at the range of analysts’ estimates, to gauge how different outliers are from the average. The most bullish comScore analyst has a price target of US $ 7.00 per share, while the most pessimistic puts it at US $ 3.50. This is a fairly wide range of estimates, suggesting that analysts are predicting a wide range of possible outcomes for the business.
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. Analysts certainly expect comScore growth to accelerate, with an annualized growth forecast of 6.5% through the end of 2021 ranking favorably alongside historic growth of 0.2% per year. over the past five years. Compare that with other companies in the same industry, which are expected to increase their revenues by 4.7% per year. It seems obvious that while the outlook for growth is brighter than in the recent past, analysts also expect comScore to grow faster than the industry as a whole.
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 comScore. Fortunately, there have been no major changes to the revenue forecast, with the business still 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 estimates – from several comScore analysts – going up to 2023, and you can see them for free on our platform here.
You should always take note of risks, for example – comScore has 3 warning signs we think you should be aware.
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