Yahoo Finance Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) Analysts Are Pretty Bullish On The Stock After Recent Results
Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) investors will be delighted, with the company turning in some strong numbers with its latest results. Revenues of US$39m were better than expected, some 13% ahead of forecasts. The company still lost a statutory US$0.33 per share, although the losses were 15% smaller than the analyst expected. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Altisource Portfolio Solutions
Taking into account the latest results, the most recent consensus for Altisource Portfolio Solutions from one analyst is for revenues of US$170.8m in 2024. If met, it would imply a meaningful 18% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 48% to US$1.02. Before this latest report, the consensus had been expecting revenues of US$175.4m and US$1.07 per share in losses. It looks like there's been a modest increase in sentiment in the recent updates, with the analyst becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers fell somewhat.
There was a decent 20% increase in the price target to US$18.00, with the analyst clearly signalling that the expected reduction in losses is a positive, despite a weaker revenue outlook.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing stands out from these estimates, which is that Altisource Portfolio Solutions is forecast to grow faster in the future than it has in the past, with revenues expected to display 24% annualised growth until the end of 2024. If achieved, this would be a much better result than the 41% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 11% annually. Not only are Altisource Portfolio Solutions' revenues expected to improve, it seems that the analyst is also expecting it to grow faster 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Still, earnings per share are more important to value creation for shareholders. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Altisource Portfolio Solutions going out as far as 2025, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 5 warning signs for Altisource Portfolio Solutions (2 are a bit unpleasant) you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
