Here's What Analysts Are Forecasting For Cambium Networks Corporation (NASDAQ:CMBM) After Its Full-Year Results
Investors in Cambium Networks Corporation (NASDAQ:CMBM) had a good week, as its shares rose 3.6% to close at US$4.62 following the release of its full-year results. Revenues were in line with expectations, at US$220m, while statutory losses ballooned to US$2.31 per share. 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.
View our latest analysis for Cambium Networks
After the latest results, the six analysts covering Cambium Networks are now predicting revenues of US$225.6m in 2024. If met, this would reflect a satisfactory 2.4% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 73% to US$0.61. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$226.2m and losses of US$0.43 per share in 2024. So it's pretty clear the analysts have mixed opinions on Cambium Networks even after this update; although they reconfirmed their revenue numbers, it came at the cost of a sizeable expansion in per-share losses.
As a result, there was no major change to the consensus price target of US$7.06, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. 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. There are some variant perceptions on Cambium Networks, with the most bullish analyst valuing it at US$9.75 and the most bearish at US$5.00 per share. 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.
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 can infer from the latest estimates that forecasts expect a continuation of Cambium Networks'historical trends, as the 2.4% annualised revenue growth to the end of 2024 is roughly in line with the 2.5% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 3.6% annually. So it's pretty clear that Cambium Networks is expected to grow slower than similar companies in the same industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Cambium Networks' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$7.06, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Cambium Networks. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Cambium Networks going out to 2025, and you can see them free on our platform here..
You can also see whether Cambium Networks is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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.
