CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) Just Released Its Full-Year Earnings: Here's What Analysts Think
It's been a good week for CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) shareholders, because the company has just released its latest full-year results, and the shares gained 3.9% to US$11.71. The results look positive overall; while revenues of US$866m were in line with analyst predictions, statutory losses were 2.3% smaller than expected, with CCC Intelligent Solutions Holdings losing US$0.15 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for CCC Intelligent Solutions Holdings
Taking into account the latest results, the consensus forecast from CCC Intelligent Solutions Holdings' eleven analysts is for revenues of US$947.1m in 2024. This reflects a solid 9.3% improvement in revenue compared to the last 12 months. CCC Intelligent Solutions Holdings is also expected to turn profitable, with statutory earnings of US$0.071 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$934.2m and earnings per share (EPS) of US$0.11 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.
The consensus price target held steady at US$13.53, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. There are some variant perceptions on CCC Intelligent Solutions Holdings, with the most bullish analyst valuing it at US$14.00 and the most bearish at US$12.90 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company 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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 9.3% growth on an annualised basis. That is in line with its 8.7% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 12% per year. So although CCC Intelligent Solutions Holdings is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for CCC Intelligent Solutions Holdings. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
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 CCC Intelligent Solutions Holdings going out to 2026, and you can see them free on our platform here..
It might also be worth considering whether CCC Intelligent Solutions Holdings' debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.
