CA$2.80: That's What Analysts Think Tantalus Systems Holding Inc. (TSE:GRID) Is Worth After Its Latest Results
Last week saw the newest annual earnings release from Tantalus Systems Holding Inc. (TSE:GRID), an important milestone in the company's journey to build a stronger business. Revenues came in at US$32m, in line with expectations, while statutory losses per share were substantially higher than expected, at US$0.17 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Tantalus Systems Holding
After the latest results, the five analysts covering Tantalus Systems Holding are now predicting revenues of US$39.6m in 2022. If met, this would reflect a sizeable 23% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 45% to US$0.087. Before this latest report, the consensus had been expecting revenues of US$39.7m and US$0.083 per share in losses. So it's pretty clear consensus is mixed on Tantalus Systems Holding after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a modest increase to per-share loss expectations.
With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 5.5% to CA$2.80, with the analysts signalling that growing losses would be a definite concern. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Tantalus Systems Holding at CA$3.96 per share, while the most bearish prices it at CA$1.75. 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.
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. One thing stands out from these estimates, which is that Tantalus Systems Holding is forecast to grow faster in the future than it has in the past, with revenues expected to display 23% annualised growth until the end of 2022. If achieved, this would be a much better result than the 8.8% annual decline over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 12% annually. So it looks like Tantalus Systems Holding is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Tantalus Systems Holding. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
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 Simply Wall St, we have a full range of analyst estimates for Tantalus Systems Holding going out to 2023, and you can see them free on our platform here..
Don't forget that there may still be risks. For instance, we've identified 4 warning signs for Tantalus Systems Holding that you should be aware of.
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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.
