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Shareholders of One Stop Systems, Inc. (NASDAQ:OSS) will be pleased this week, given that the stock price is up 16% to US$2.67 following its latest quarterly results. The results don't look great, especially considering that statutory losses grew 256% toUS$0.32 per share. Revenues of US$14m did beat expectations by 2.9%, but it looks like a bit of a cold comfort. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for One Stop Systems
Taking into account the latest results, the most recent consensus for One Stop Systems from three analysts is for revenues of US$58.5m in 2025. If met, it would imply a decent 11% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 64% to US$0.19. Before this latest report, the consensus had been expecting revenues of US$60.9m and US$0.19 per share in losses. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers fell somewhat.
The consensus price target was broadly unchanged at US$3.83, implying that the business is performing roughly in line with expectations, despite adjustments to both revenue and earnings estimates. 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 One Stop Systems at US$5.50 per share, while the most bearish prices it at US$2.50. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting One Stop Systems' growth to accelerate, with the forecast 8.7% annualised growth to the end of 2025 ranking favourably alongside historical growth of 2.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.0% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that One Stop Systems is expected to grow much faster than its industry.