Cardlytics, Inc. (NASDAQ:CDLX) Released Earnings Last Week And Analysts Lifted Their Price Target To US$17.00
Shareholders will be ecstatic, with their stake up 71% over the past week following Cardlytics, Inc.'s (NASDAQ:CDLX) latest annual results. It was a pretty bad result overall; while revenues were in line with expectations at US$309m, statutory losses exploded to US$3.69 per share. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for Cardlytics
Taking into account the latest results, the current consensus from Cardlytics' three analysts is for revenues of US$337.8m in 2024. This would reflect a solid 9.2% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 58% to US$1.29. Before this latest report, the consensus had been expecting revenues of US$328.2m and US$1.58 per share in losses. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a notable improvement in loss per share in particular.
The consensus price target rose 46% to US$17.00, with the analysts encouraged by the higher revenue and lower forecast losses for next year. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Cardlytics at US$18.00 per share, while the most bearish prices it at US$15.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Cardlytics' revenue growth is expected to slow, with the forecast 9.2% annualised growth rate until the end of 2024 being well below the historical 14% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.1% per year. So it's pretty clear that, while Cardlytics' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
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 Cardlytics going out to 2025, and you can see them free on our platform here..
It is also worth noting that we have found 3 warning signs for Cardlytics (1 is a bit unpleasant!) 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.
