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It's been a pretty great week for Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) shareholders, with its shares surging 17% to US$24.68 in the week since its latest quarterly results. Grid Dynamics Holdings beat revenue forecasts by a solid 14%, hitting US$48m. Statutory losses also blew out, with the loss per share reaching US$0.03, some 49% bigger than the analysts expected. 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.
Check out our latest analysis for Grid Dynamics Holdings
Taking into account the latest results, the consensus forecast from Grid Dynamics Holdings' seven analysts is for revenues of US$190.0m in 2021, which would reflect a major 33% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 75% to US$0.045. Before this latest report, the consensus had been expecting revenues of US$168.7m and US$0.12 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.
It will come as no surprise to learn thatthe analysts have increased their price target for Grid Dynamics Holdings 31% to US$27.50on the back of these upgrades. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Grid Dynamics Holdings at US$30.00 per share, while the most bearish prices it at US$25.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Grid Dynamics Holdings' growth to accelerate, with the forecast 76% annualised growth to the end of 2021 ranking favourably alongside historical growth of 21% per annum over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 15% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Grid Dynamics Holdings is expected to grow much faster than its industry.