Here's What Analysts Are Forecasting For Global-e Online Ltd. (NASDAQ:GLBE) After Its Yearly Results
It's been a sad week for Global-e Online Ltd. (NASDAQ:GLBE), who've watched their investment drop 19% to US$33.11 in the week since the company reported its yearly result. The results overall were pretty much dead in line with analyst forecasts; revenues were US$570m and statutory losses were US$0.81 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.
See our latest analysis for Global-e Online
Following the latest results, Global-e Online's 13 analysts are now forecasting revenues of US$750.0m in 2024. This would be a substantial 32% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 26% to US$0.60. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$756.1m and losses of US$0.59 per share in 2024. Overall it looks as though the analysts were a bit mixed on the latest consensus updates. Although revenue forecasts held steady, the consensus also made a modest increase to its losses per share forecasts.
As a result, there was no major change to the consensus price target of US$45.35, 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. The most optimistic Global-e Online analyst has a price target of US$53.00 per share, while the most pessimistic values it at US$40.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Global-e Online's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 32% growth on an annualised basis. This is compared to a historical growth rate of 41% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% annually. Even after the forecast slowdown in growth, it seems obvious that Global-e Online is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Global-e Online. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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 Global-e Online going out to 2026, and you can see them free on our platform here..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Global-e Online , and understanding it should be part of your investment process.
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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.
