Investors in InVision Aktiengesellschaft (ETR:IVX) had a good week, as its shares rose 6.7% to close at €9.50 following the release of its full-year results. The statutory results were mixed overall, with revenues of €15m in line with analyst forecasts, but losses of €1.78 per share, some 7.2% larger than the analysts were predicting. 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. 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 InVision

Following the latest results, InVision's twin analysts are now forecasting revenues of €15.6m in 2023. This would be a modest 7.0% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 45% to €0.98. Yet prior to the latest earnings, the analysts had been forecasting revenues of €17.0m and losses of €0.93 per share in 2023. Overall it looks as though the analysts are negative in this update. Although sales forecasts held steady, the consensus also made a pronounced increase to to its losses per share forecasts.

The average price target fell 25% to €15.75, implicitly signalling that lower earnings per share are a leading indicator for InVision's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting InVision's growth to accelerate, with the forecast 7.0% annualised growth to the end of 2023 ranking favourably alongside historical growth of 1.9% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 7.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that InVision is expected 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 sales forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of InVision's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for InVision going out as far as 2025, and you can see them free on our platform here.