In This Article:
Weave Communications, Inc. (NYSE:WEAV) just released its latest first-quarter results and things are looking bullish. Revenues and losses per share both beat expectations, with revenues of US$33m leading estimates by 5.6%. Statutory losses were somewhat smaller thanthe analysts expected, coming in at US$0.21 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Weave Communications
Following the latest results, Weave Communications' eight analysts are now forecasting revenues of US$137.6m in 2022. This would be a decent 11% improvement in sales compared to the last 12 months. Losses are forecast to narrow 3.1% to US$0.86 per share. Before this latest report, the consensus had been expecting revenues of US$137.6m and US$0.86 per share in losses.
As a result, it's unexpected to see that the consensus price target fell 19% to US$11.29, with the analysts seemingly becoming more concerned about ongoing losses, despite making no major changes to their forecasts. 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. There are some variant perceptions on Weave Communications, with the most bullish analyst valuing it at US$25.00 and the most bearish at US$6.00 per share. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
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. We would highlight that Weave Communications' revenue growth is expected to slow, with the forecast 16% annualised growth rate until the end of 2022 being well below the historical 38% growth over the last year. Compare this to the 454 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 14% per year. Factoring in the forecast slowdown in growth, it looks like Weave Communications is forecast to grow at about the same rate as the wider industry.