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Boxlight Corporation (NASDAQ:BOXL) Just Reported Earnings, And Analysts Cut Their Target Price

It's been a pretty great week for Boxlight Corporation (NASDAQ:BOXL) shareholders, with its shares surging 14% to US$0.75 in the week since its latest second-quarter results. Revenues of US$60m beat analyst forecasts by10%, while the business broke even in terms of statutory earnings per share (EPS). 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Boxlight

earnings-and-revenue-growth
earnings-and-revenue-growth

Taking into account the latest results, the current consensus from Boxlight's three analysts is for revenues of US$250.2m in 2022, which would reflect a decent 16% increase on its sales over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 46% to US$0.095. Before this latest report, the consensus had been expecting revenues of US$249.8m and US$0.093 per share in losses.

As a result, it's unexpected to see that the consensus price target fell 28% to US$3.50, with the analysts seemingly becoming more concerned about ongoing losses, despite making no major changes to their forecasts. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Boxlight at US$4.00 per share, while the most bearish prices it at US$3.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Boxlight's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 35% growth on an annualised basis. This is compared to a historical growth rate of 49% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.6% per year. Even after the forecast slowdown in growth, it seems obvious that Boxlight is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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 Boxlight's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Boxlight going out to 2023, and you can see them free on our platform here..

Before you take the next step you should know about the 4 warning signs for Boxlight that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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