Analysts Have Been Trimming Their CareCloud, Inc. (NASDAQ:CCLD) Price Target After Its Latest Report
Last week, you might have seen that CareCloud, Inc. (NASDAQ:CCLD) released its yearly result to the market. The early response was not positive, with shares down 8.7% to US$1.15 in the past week. It was a pretty bad result overall; while revenues were in line with expectations at US$117m, statutory losses exploded to US$4.11 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for CareCloud
Following last week's earnings report, CareCloud's dual analysts are forecasting 2024 revenues to be US$116.1m, approximately in line with the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 92% to US$0.30. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$124.7m and losses of US$1.05 per share in 2024. Although the revenue estimates have fallen somewhat, CareCloud'sfuture looks a little different to the past, with a very promising decrease in the loss per share forecasts in particular.
The consensus price target fell 12% to US$3.63, with the dip in revenue estimates clearly souring sentiment, despite the forecast reduction in losses.
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. We would highlight that revenue is expected to reverse, with a forecast 0.9% annualised decline to the end of 2024. That is a notable change from historical growth of 17% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 11% annually for the foreseeable future. It's pretty clear that CareCloud'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 negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of CareCloud's future valuation.
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 least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.
It is also worth noting that we have found 4 warning signs for CareCloud that you need to take into consideration.
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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.
