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It's been a good week for kneat.com, inc. (TSE:KSI) shareholders, because the company has just released its latest first-quarter results, and the shares gained 10.0% to CA$4.40. The results look positive overall; while revenues of CA$11m were in line with analyst predictions, statutory losses were 7.7% smaller than expected, with kneat.com losing CA$0.04 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for kneat.com
Taking into account the latest results, the current consensus from kneat.com's five analysts is for revenues of CA$47.7m in 2024. This would reflect a sizeable 29% increase on its revenue over the past 12 months. Losses are supposed to decline, shrinking 13% from last year to CA$0.15. Before this earnings announcement, the analysts had been modelling revenues of CA$47.1m and losses of CA$0.15 per share in 2024. So it's pretty clear consensus is mixed on kneat.com after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a pronounced increase to per-share loss expectations.
Despite expectations of heavier losses next year,the analysts have lifted their price target 11% to CA$4.85, perhaps implying these losses are not expected to be recurring over the long term. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on kneat.com, with the most bullish analyst valuing it at CA$5.25 and the most bearish at CA$4.15 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
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 can infer from the latest estimates that forecasts expect a continuation of kneat.com'shistorical trends, as the 40% annualised revenue growth to the end of 2024 is roughly in line with the 47% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 11% per year. So it's pretty clear that kneat.com is forecast to grow substantially faster than its industry.