Analysts Are Upgrading Audinate Group Limited (ASX:AD8) After Its Latest Results
There's been a notable change in appetite for Audinate Group Limited (ASX:AD8) shares in the week since its yearly report, with the stock down 12% to AU$8.44. The statutory results were not great - while revenues of AU$46m were in line with expectations,Audinate Group lost AU$0.058 a share in the process. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for Audinate Group
Following the latest results, Audinate Group's four analysts are now forecasting revenues of AU$59.7m in 2023. This would be a substantial 29% improvement in sales compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 72% to AU$0.016. Yet prior to the latest earnings, the analysts had been forecasting revenues of AU$56.8m and losses of AU$0.025 per share in 2023. So it seems there's been a definite increase in optimism about Audinate Group's future following the latest consensus numbers, with a very promising decrease in the loss per share forecasts in particular.
Despite these upgrades,the analysts have not made any major changes to their price target of AU$10.49, implying that their latest estimates don't have a long term impact on what they think the stock is worth. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Audinate Group at AU$11.75 per share, while the most bearish prices it at AU$10.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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. It's clear from the latest estimates that Audinate Group's rate of growth is expected to accelerate meaningfully, with the forecast 29% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 18% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 22% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Audinate Group 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at AU$10.49, with the latest estimates not enough to have an impact on their price targets.
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. We have estimates - from multiple Audinate Group analysts - going out to 2025, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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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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