Clear Secure, Inc. (NYSE:YOU) Just Reported, And Analysts Assigned A US$32.67 Price Target
Investors in Clear Secure, Inc. (NYSE:YOU) had a good week, as its shares rose 7.8% to close at US$23.01 following the release of its full-year results. Revenues of US$254m arrived in line with expectations, although statutory losses per share were US$0.48, an impressive 40% smaller than what broker models predicted. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Clear Secure
Following the latest results, Clear Secure's six analysts are now forecasting revenues of US$390.2m in 2022. This would be a substantial 54% improvement in sales compared to the last 12 months. Losses are forecast to balloon 160% to US$0.63 per share. Before this earnings announcement, the analysts had been modelling revenues of US$376.7m and losses of US$0.56 per share in 2022. While this year's revenue estimates increased, there was also a noticeable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
It will come as no surprise that expanding losses caused the consensus price target to fall 20% to US$32.67with the analysts implicitly ranking ongoing losses as a greater concern than growing revenues. 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 Clear Secure at US$40.00 per share, while the most bearish prices it at US$27.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
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 analysts are definitely expecting Clear Secure's growth to accelerate, with the forecast 54% annualised growth to the end of 2022 ranking favourably alongside historical growth of 10% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Clear Secure is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Clear Secure analysts - going out to 2024, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 2 warning signs for Clear Secure 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.
