ACV Auctions Inc. (NASDAQ:ACVA) Just Released Its Annual Earnings: Here's What Analysts Think
Shareholders of ACV Auctions Inc. (NASDAQ:ACVA) will be pleased this week, given that the stock price is up 16% to US$16.52 following its latest full-year results. The results overall were pretty much dead in line with analyst forecasts; revenues were US$481m and statutory losses were US$0.47 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on ACV Auctions after the latest results.
View our latest analysis for ACV Auctions
Taking into account the latest results, the current consensus from ACV Auctions' twelve analysts is for revenues of US$613.8m in 2024. This would reflect a substantial 28% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 29% to US$0.33. Before this earnings announcement, the analysts had been modelling revenues of US$584.3m and losses of US$0.28 per share in 2024. While this year's revenue estimates increased, there was also a noticeable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
The consensus price target stayed unchanged at US$20.69, seeming to suggest that higher forecast losses are not expected to have a long term impact on the valuation. 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. There are some variant perceptions on ACV Auctions, with the most bullish analyst valuing it at US$24.00 and the most bearish at US$15.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 28% growth on an annualised basis. That is in line with its 23% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.5% annually. So although ACV Auctions is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at ACV Auctions. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for ACV Auctions going out to 2026, and you can see them free on our platform here..
It is also worth noting that we have found 1 warning sign for ACV Auctions that you need to take into consideration.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
