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As you might know, LifeSpeak Inc. (TSE:LSPK) last week released its latest quarterly, and things did not turn out so great for shareholders. It was a pretty negative result overall, with revenues of CA$12m missing analyst predictions by 4.5%. Worse, the business reported a statutory loss of CA$0.10 per share, much larger than the analysts had forecast prior to the result. 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.
Check out our latest analysis for LifeSpeak
After the latest results, the three analysts covering LifeSpeak are now predicting revenues of CA$53.5m in 2025. If met, this would reflect an okay 7.9% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 51% to CA$0.23. Before this latest report, the consensus had been expecting revenues of CA$54.5m and CA$0.16 per share in losses. So it's pretty clear the analysts have mixed opinions on LifeSpeak even after this update; although they reconfirmed their revenue numbers, it came at the cost of a very substantial increase in per-share losses.
With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 6.8% to CA$0.41, with the analysts signalling that growing losses would be a definite concern. 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 LifeSpeak analyst has a price target of CA$0.60 per share, while the most pessimistic values it at CA$0.20. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that LifeSpeak's revenue growth is expected to slow, with the forecast 6.3% annualised growth rate until the end of 2025 being well below the historical 34% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 16% annually. Factoring in the forecast slowdown in growth, it seems obvious that LifeSpeak is also expected to grow slower than other industry participants.