Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) Released Earnings Last Week And Analysts Lifted Their Price Target To US$18.00
Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) shareholders are probably feeling a little disappointed, since its shares fell 2.4% to US$2.81 in the week after its latest full-year results. The statutory results were mixed overall, with revenues of US$145m in line with analyst forecasts, but losses of US$2.51 per share, some 2.4% larger than the analysts were predicting. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for Altisource Portfolio Solutions
Taking into account the latest results, the current consensus from Altisource Portfolio Solutions' twin analysts is for revenues of US$175.4m in 2024. This would reflect a major 21% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 50% to US$1.07. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$172.8m and losses of US$1.30 per share in 2024. Although the revenue estimates have not really changed Altisource Portfolio Solutions'future looks a little different to the past, with a notable improvement in the loss per share forecasts in particular.
The average price target rose 20% to US$18.00, with the analysts signalling that the forecast reduction in losses would be a positive for the stock's valuation.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that Altisource Portfolio Solutions is forecast to grow faster in the future than it has in the past, with revenues expected to display 21% annualised growth until the end of 2024. If achieved, this would be a much better result than the 41% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 11% annually. Not only are Altisource Portfolio Solutions' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that in mind, we wouldn't be too quick to come to a conclusion on Altisource Portfolio Solutions. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.
Even so, be aware that Altisource Portfolio Solutions is showing 5 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...
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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.
