VerticalScope Holdings Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

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A week ago, VerticalScope Holdings Inc. (TSE:FORA) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 4.4% to hit US$18m. VerticalScope Holdings also reported a statutory profit of US$0.06, which was an impressive 140% above what the analysts had forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for VerticalScope Holdings

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TSX:FORA Earnings and Revenue Growth November 15th 2024

Taking into account the latest results, the current consensus from VerticalScope Holdings' nine analysts is for revenues of US$75.5m in 2025. This would reflect a notable 13% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 162% to US$0.33. Before this earnings report, the analysts had been forecasting revenues of US$72.8m and earnings per share (EPS) of US$0.25 in 2025. So it seems there's been a definite increase in optimism about VerticalScope Holdings' future following the latest results, with a sizeable expansion in the earnings per share forecasts in particular.

It will come as no surprise to learn that the analysts have increased their price target for VerticalScope Holdings 6.1% to CA$14.82on the back of these upgrades. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on VerticalScope Holdings, with the most bullish analyst valuing it at CA$17.61 and the most bearish at CA$10.06 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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 VerticalScope Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 9.9% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 1.8% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 11% per year. VerticalScope Holdings is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.