Analysts Have Been Trimming Their Vislink Technologies, Inc. (NASDAQ:VISL) Price Target After Its Latest Report

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Vislink Technologies, Inc. (NASDAQ:VISL) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasts. Unfortunately, Vislink Technologies delivered a serious earnings miss. Revenues of US$7.1m were 17% below expectations, and statutory losses ballooned 67% to US$1.22 per share. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Vislink Technologies after the latest results.

Check out our latest analysis for Vislink Technologies

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NasdaqCM:VISL Earnings and Revenue Growth November 17th 2024

Taking into account the latest results, the lone analyst covering Vislink Technologies provided consensus estimates of US$30.5m revenue in 2025, which would reflect a noticeable 5.9% decline over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 80% to US$0.70. Before this latest report, the consensus had been expecting revenues of US$39.3m and US$1.50 per share in losses. We can see there's definitely been a change in sentiment in this update, with the analyst administering a meaningful downgrade to next year's revenue estimates, while at the same time reducing their loss estimates.

The consensus price target fell 25% to US$9.00, with the dip in revenue estimates clearly souring sentiment, despite the forecast reduction in losses.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 4.7% by the end of 2025. This indicates a significant reduction from annual growth of 3.0% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 8.2% annually for the foreseeable future. It's pretty clear that Vislink Technologies' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most obvious conclusion is that the analyst made no changes to their forecasts for a loss next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. With that said, earnings are more important to the long-term value of the business. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Vislink Technologies' future valuation.