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Identiv, Inc. (NASDAQ:INVE) just released its latest quarterly report and things are not looking great. It was a pretty negative result overall, with revenues of US$22m missing analyst predictions by 2.2%. Worse, the business reported a statutory loss of US$0.21 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.
View our latest analysis for Identiv
Taking into account the latest results, the current consensus, from the four analysts covering Identiv, is for revenues of US$105.4m in 2024. This implies a small 6.6% reduction in Identiv's revenue over the past 12 months. Per-share losses are expected to explode, reaching US$0.57 per share. Before this latest report, the consensus had been expecting revenues of US$117.8m and US$0.22 per share in losses. There's been a definite change in sentiment in this update, with the analysts administering a notable cut to next year's revenue estimates, while at the same time increasing their loss per share forecasts.
The average price target fell 5.3% to US$8.88, implicitly signalling that lower earnings per share are a leading indicator for Identiv's valuation. 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. The most optimistic Identiv analyst has a price target of US$11.00 per share, while the most pessimistic values it at US$7.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 8.7% by the end of 2024. This indicates a significant reduction from annual growth of 8.8% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.2% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Identiv is expected to lag the wider industry.