It’s been a great week for CCC Intelligent Solutions Holdings Inc. (NYSE:CCCS), its shares jumping 11% to US$11.00 in the week since its last annual results. It was a very poor result overall; while revenue was in line with expectations at $688 million, statutory losses exploded to $0.46 per share. Following the result, analysts have updated their earnings model, and it would be good to know if they think there has been a strong change in the company’s outlook, or if business is as it is. habit. We’ve rounded up the most recent statutory forecasts to see if analysts have changed their earnings models as a result of these results.
See our latest analysis for CCC Intelligent Solutions Holdings
Following the latest results, the five analysts at CCC Intelligent Solutions Holdings now forecast revenue of US$762.4 million in 2022. That would represent a decent 11% improvement in sales over the past 12 months. CCC Intelligent Solutions Holdings is also expected to turn profitable, with statutory earnings of $0.094 per share. Still, before the latest results, analysts had forecast revenue of $760.6 million and earnings per share (EPS) of $0.11 in 2022. Analysts appear to have turned more bearish after the latest results. While there was no change in revenue guidance, there was a substantial drop in EPS estimates.
It might come as a surprise to learn that the consensus price target remained broadly unchanged at US$13.70, with analysts making it clear that the expected decline in earnings is unlikely to have much impact on valuation. This is not the only conclusion we can draw from this data, however, as some investors also like to consider the discrepancy in estimates when evaluating analyst price targets. There are variant perceptions on CCC Intelligent Solutions Holdings, with the most bullish analyst pricing it at US$15.00 and the most bearish at US$11.00 per share. Even so, with a relatively close group of estimates, it appears that analysts are quite confident in their valuations, suggesting that CCC Intelligent Solutions Holdings is an easy company to predict or that analysts are all using similar assumptions.
Looking now at the big picture, one way to understand these forecasts is to see how they compare to past performance and industry growth estimates. Analysts certainly expect CCC Intelligent Solutions Holdings’ growth to accelerate, with projected annualized growth of 11% through the end of 2022 ranking favorably alongside historic growth of 5.3% per year over the course of 2022. of the past three years. Compare that with other companies in the same industry, which are expected to see revenue growth of 14% per year. It is therefore clear that despite the acceleration in growth, CCC Intelligent Solutions Holdings is expected to grow significantly slower than the industry average.
The essential
The biggest concern is that analysts have cut their earnings per share estimates, suggesting headwinds may be coming for CCC Intelligent Solutions Holdings. On the positive side, there were no major changes in revenue estimates; although forecasts imply that revenues will underperform the industry as a whole. There was no real change from the consensus price target, suggesting that the company’s intrinsic value has not undergone major changes with the latest estimates.
That said, the company’s long-term earnings trajectory is much more important than next year. We have estimates – from several analysts at CCC Intelligent Solutions Holdings – going out to 2024, and you can see them for free on our platform here.
You can also view our CCC Intelligent Solutions Holdings balance sheet analysis and find out if we think CCC Intelligent Solutions Holdings has too much debt, for free on our platform here.
Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
