N-able, Inc. (NYSE:NABL) Just Reported, And Analysts Assigned A US$14.70 Price Target
N-able, Inc. (NYSE:NABL) last week reported its latest full-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results were overall in line with expectations, with the company breaking even at the statutory earnings per share (EPS) level on US$346m in revenue. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for N-able
Taking into account the latest results, the consensus forecast from N-able's six analysts is for revenues of US$386.4m in 2022, which would reflect a notable 12% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 41,830% to US$0.26. In the lead-up to this report, the analysts had been modelling revenues of US$390.3m and earnings per share (EPS) of US$0.24 in 2022. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the solid gain to earnings per share expectations following these results.
The consensus price target fell 8.7% to US$14.70, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns. 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 N-able, with the most bullish analyst valuing it at US$18.00 and the most bearish at US$12.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await N-able shareholders.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2022 brings more of the same, according to the analysts, with revenue forecast to display 12% growth on an annualised basis. That is in line with its 13% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 14% per year. So although N-able is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards N-able following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that N-able's revenues are expected to perform worse 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.
With that in mind, we wouldn't be too quick to come to a conclusion on N-able. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple N-able analysts - going out to 2024, and you can see them free on our platform here.
It is also worth noting that we have found 2 warning signs for N-able (1 doesn't sit too well with us!) that you need to take into consideration.
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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.
