Last week you may have seen it Vivint Smart Home, Inc. (NYSE: VVNT) released its annual result to the market. The initial response was not positive, with stocks falling 9.6% to US $ 17.00 last week. It was a decent result overall, with revenue of $ 1.3 billion, roughly what analysts expected. Analysts usually update their forecasts with each earnings report, and we can judge from their estimates whether their view of the business has changed or if there are new concerns to consider. So we’ve collected the latest post-profit statutory consensus estimates to see what might be in store for next year.
Check out our latest review for Vivint Smart Home
Based on the latest results, the current consensus of six Vivint Smart Home analysts is forecasting sales of US $ 1.40 billion in 2021, which would reflect a notable 11% increase in sales over the past 12 months. last months. Losses per share are expected to increase sharply, reaching US $ 2.83. Prior to this latest report, the consensus expected revenues of US $ 1.39 billion and US $ 2.14 per share of losses. So it’s pretty clear that analysts have mixed opinions on Vivint Smart Home even after this update; although they have reconfirmed their income figures, it has come at the cost of an unfortunate increase in losses per share.
The consensus price target has remained at US $ 24.33, which apparently implies that the higher expected losses should not have a long-term impact on the valuation of the company. It might also be instructive to look at the range of analysts’ estimates, to gauge how different outliers are from the average. There are a few variations of perceptions on Vivint Smart Home, with the most bullish analyst valuing it at US $ 34.00 and the most bearish at US $ 20.00 per share. These price targets show that analysts have different views on the company, but the estimates don’t vary enough to suggest that some are betting on wild success or complete failure.
Of course, another way to look at these forecasts is to put them in context to the industry itself. Next year will bring more of the same, analysts say, with forecast revenue growth of 11%, in line with its 11% annual growth over the past three years. In contrast, our data suggests that other companies (with analyst coverage) in a similar industry are expected to see their revenues grow by 23% per year. So, although Vivint Smart Home is expected to maintain its revenue growth rate, it is expected to grow more slowly than the industry as a whole.
The bottom line
The most important thing to remember is that analysts have increased their estimates of loss per share for the next year. On the positive side, there has been no major change in income estimates; although forecasts imply that revenues will outperform the industry as a whole. The consensus price target stood at US $ 24.33 as the latest estimates were not sufficient to impact their price targets.
That said, the company’s long-term earnings trajectory is much bigger than next year. We have forecasts for Vivint Smart Home through 2023, and you can view them for free on our platform here.
It is also worth noting that we have found 4 warning signs for Vivint Smart Home (1 makes us a little uncomfortable!) That you need to take into consideration.
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