Analysts Have Made A Financial Statement On Sharecare, Inc.'s (NASDAQ:SHCR) Second-Quarter Report
Last week saw the newest second-quarter earnings release from Sharecare, Inc. (NASDAQ:SHCR), an important milestone in the company's journey to build a stronger business. The statutory results were mixed overall, with revenues of US$110m in line with analyst forecasts, but losses of US$0.10 per share, some 5.3% larger than the analysts were predicting. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Sharecare
Following last week's earnings report, Sharecare's three analysts are forecasting 2023 revenues to be US$458.2m, approximately in line with the last 12 months. Losses are supposed to decline, shrinking 12% from last year to US$0.30. Before this earnings announcement, the analysts had been modelling revenues of US$458.7m and losses of US$0.33 per share in 2023. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for this year.
The average price target held steady at US$3.33, seeming to indicate that business is performing in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Sharecare analyst has a price target of US$5.00 per share, while the most pessimistic values it at US$2.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 2.7% annualised decline to the end of 2023. That is a notable change from historical growth of 14% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 12% per year. It's pretty clear that Sharecare's revenues are expected to perform substantially worse 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Sharecare. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Sharecare going out to 2025, and you can see them free on our platform here..
Even so, be aware that Sharecare is showing 1 warning sign in our investment analysis , you should know about...
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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.
