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Last week saw the newest quarterly earnings release from Airgain, Inc. (NASDAQ:AIRG), an important milestone in the company's journey to build a stronger business. It looks like the results were pretty good overall. While revenues of US$16m were in line with analyst predictions, statutory losses were much smaller than expected, with Airgain losing US$0.16 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Airgain
Taking into account the latest results, the most recent consensus for Airgain from three analysts is for revenues of US$72.4m in 2025. If met, it would imply a huge 30% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 52% to US$0.52. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$74.2m and losses of US$0.53 per share in 2025. 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 rose 40% to US$11.17, with the analysts increasingly optimistic about shrinking losses, despite the expected decline in revenue. 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. The most optimistic Airgain analyst has a price target of US$12.00 per share, while the most pessimistic values it at US$10.00. This is a very narrow spread of estimates, implying either that Airgain is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
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. It's clear from the latest estimates that Airgain's rate of growth is expected to accelerate meaningfully, with the forecast 24% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.3% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Airgain to grow faster than the wider industry.