Investors in Cyxtera Technologies, Inc. (NASDAQ:CYXT) had a good week, as its shares rose 4.4% to close at US$12.60 following the release of its first-quarter results. The results overall were pretty much dead in line with analyst forecasts; revenues were US$182m and statutory losses were US$0.23 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Cyxtera Technologies after the latest results.
See our latest analysis for Cyxtera Technologies
After the latest results, the eight analysts covering Cyxtera Technologies are now predicting revenues of US$745.5m in 2022. If met, this would reflect a credible 4.5% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 64% to US$0.50. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$745.8m and losses of US$0.84 per share in 2022. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading revenues and making a very favorable reduction to losses per share in particular.
The average price target held steady at US$14.00, seeming to indicate that business is performing in line with expectations. 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 Cyxtera Technologies analyst has a price target of US$15.00 per share, while the most pessimistic values it at US$13.00. This is a very narrow spread of estimates, implying either that Cyxtera Technologies is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Cyxtera Technologies' growth to accelerate, with the forecast 6.1% annualised growth to the end of 2022 ranking favourably alongside historical growth of 3.2% per annum over the past year. Compare this with other companies in the same industry, which are forecast to see revenue growth of 13% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Cyxtera Technologies is expected to grow slower than the wider industry.