As you might know, CoreCard Corporation (NYSE:CCRD) just kicked off its latest second-quarter results with some very strong numbers. CoreCard delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting US$14m-14% above indicated-andUS$0.11-120% above forecasts- respectively Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

See our latest analysis for CoreCard

Taking into account the latest results, the most recent consensus for CoreCard from sole analyst is for revenues of US$54.1m in 2024. If met, it would imply a reasonable 3.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 142% to US$0.48. In the lead-up to this report, the analyst had been modelling revenues of US$51.4m and earnings per share (EPS) of US$0.33 in 2024. There's been a pretty noticeable increase in sentiment, with the analyst upgrading revenues and making a massive increase in earnings per share in particular.

As a result, it might be a surprise to see thatthe analyst has cut their price target 30% to US$19.00, which could suggest the forecast improvement in performance is not expected to last.

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 CoreCard's revenue growth is expected to slow, with the forecast 6.4% annualised growth rate until the end of 2024 being well below the historical 15% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 12% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than CoreCard.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around CoreCard's earnings potential next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.