Analysts Have Been Trimming Their Greenidge Generation Holdings Inc. (NASDAQ:GREE) Price Target After Its Latest Report
Greenidge Generation Holdings Inc. (NASDAQ:GREE) just released its latest second-quarter report and things are not looking great. Revenues missed expectations somewhat, coming in at US$31m, but statutory earnings fell catastrophically short, with a loss of US$2.61 some 2,075% larger than what the analysts had predicted. 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 Greenidge Generation Holdings
Taking into account the latest results, the consensus forecast from Greenidge Generation Holdings' dual analysts is for revenues of US$153.5m in 2022, which would reflect a reasonable 3.0% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 68% to US$0.35. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$153.5m and losses of US$0.35 per share in 2022.
The analysts trimmed their valuations, with the average price target falling 23% to US$5.13, with the ongoing losses seemingly weighing on sentiment, despite no real changes to the earnings forecasts.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Greenidge Generation Holdings' revenue growth is expected to slow, with the forecast 6.1% annualised growth rate until the end of 2022 being well below the historical 277% growth over the last year. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 14% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Greenidge Generation Holdings.
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 revenues will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Greenidge Generation Holdings' future valuation.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.
Even so, be aware that Greenidge Generation Holdings 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.
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