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GSE Systems, Inc. (NASDAQ:GVP) Analysts Are Pretty Bullish On The Stock After Recent Results

There's been a notable change in appetite for GSE Systems, Inc. (NASDAQ:GVP) shares in the week since its yearly report, with the stock down 12% to US$0.62. Revenues of US$48m came in 2.3% below estimates, but statutory losses were slightly better than expected, at US$0.72 per share. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

View our latest analysis for GSE Systems


Taking into account the latest results, the most recent consensus for GSE Systems from sole analyst is for revenues of US$55.4m in 2023 which, if met, would be a notable 16% increase on its sales over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 77% to US$0.15. Before this earnings announcement, the analyst had been modelling revenues of US$57.7m and losses of US$0.24 per share in 2023. While the revenue estimates fell, sentiment seems to have improved, with the analyst making a very promising decrease in losses per share in particular.

The consensus price target rose 71% to US$3.00, with the analyst increasingly optimistic about shrinking losses, despite the expected decline in sales.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that GSE Systems is forecast to grow faster in the future than it has in the past, with revenues expected to display 16% annualised growth until the end of 2023. If achieved, this would be a much better result than the 13% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 12% per year. So it looks like GSE Systems is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that the analyst reconfirmed their loss per share estimates for next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, earnings are more important to the intrinsic value of the business. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

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. We have analyst estimates for GSE Systems going out as far as 2025, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for GSE Systems (1 doesn't sit too well with us) you should be aware of.

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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