As you might know, HyreCar Inc. (NASDAQ:HYRE) just kicked off its latest third-quarter results with some very strong numbers. Results overall were solid, with revenues arriving 6.5% better than analyst forecasts at US$6.8m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.10 per share, were 6.5% smaller than the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on HyreCar after the latest results.
Taking into account the latest results, the current consensus from HyreCar's four analysts is for revenues of US$39.0m in 2021, which would reflect a sizeable 70% increase on its sales over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 86% to US$0.13. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$37.6m and losses of US$0.14 per share in 2021. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a loss per share in particular.
The consensus price target rose 10% to US$7.09, with the analysts encouraged by the higher revenue and lower forecast losses for next year. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic HyreCar analyst has a price target of US$8.00 per share, while the most pessimistic values it at US$6.35. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting HyreCar is an easy business to forecast or the the analysts are all using similar assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the HyreCar's past performance and to peers in the same industry. It's clear from the latest estimates that HyreCar's rate of growth is expected to accelerate meaningfully, with the forecast 70% revenue growth noticeably faster than its historical growth of 52%p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that HyreCar is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed 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. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple HyreCar analysts - going out to 2021, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 4 warning signs for HyreCar (of which 1 shouldn't be ignored!) you should know about.
This article by Simply Wall St is general in nature. 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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