AdTheorent Holding Company, Inc. (NASDAQ:ADTH) Released Earnings Last Week And Analysts Lifted Their Price Target To US$4.90
Investors in AdTheorent Holding Company, Inc. (NASDAQ:ADTH) had a good week, as its shares rose 8.9% to close at US$3.29 following the release of its yearly results. Revenues beat expectations, coming in 2.1% ahead of forecasts, and the company broke even on a statutory earnings per share (EPS) level. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for AdTheorent Holding Company
Taking into account the latest results, the consensus forecast from AdTheorent Holding Company's five analysts is for revenues of US$191.0m in 2024. This reflects a decent 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 77,822% to US$0.06. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$182.6m and earnings per share (EPS) of US$0.048 in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a sizeable expansion in earnings per share in particular.
It will come as no surprise to learn that the analysts have increased their price target for AdTheorent Holding Company 17% to US$4.90on the back of these upgrades. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values AdTheorent Holding Company at US$7.00 per share, while the most bearish prices it at US$3.75. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that AdTheorent Holding Company's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 7.5% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.1% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect AdTheorent Holding Company to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards AdTheorent Holding Company following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for AdTheorent Holding Company going out to 2026, and you can see them free on our platform here..
You still need to take note of risks, for example - AdTheorent Holding Company has 4 warning signs we think you should be aware of.
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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.
