SpringBig Holdings, Inc. (NASDAQ:SBIG) Consensus Forecasts Have Become A Little Darker Since Its Latest Report
Shareholders might have noticed that SpringBig Holdings, Inc. (NASDAQ:SBIG) filed its second-quarter result this time last week. The early response was not positive, with shares down 7.1% to US$0.27 in the past week. It was a pretty bad result overall; while revenues were in line with expectations at US$7.2m, statutory losses exploded to US$0.06 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for SpringBig Holdings
Following the latest results, SpringBig Holdings' three analysts are now forecasting revenues of US$29.9m in 2023. This would be a modest 5.2% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 37% to US$0.18. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$31.7m and losses of US$0.13 per share in 2023. So it's pretty clear the analysts have mixed opinions on SpringBig Holdings after this update; revenues were downgraded and per-share losses expected to increase.
There was no major change to the consensus price target of US$1.50, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on SpringBig Holdings, with the most bullish analyst valuing it at US$2.00 and the most bearish at US$1.00 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.
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. It's pretty clear that there is an expectation that SpringBig Holdings' revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past year. Compare this to the 512 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 12% per year. Factoring in the forecast slowdown in growth, it looks like SpringBig Holdings is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target held steady at US$1.50, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple SpringBig Holdings analysts - going out to 2025, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 5 warning signs for SpringBig Holdings (4 are potentially serious!) that you should be aware of.
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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.
