Yahoo Finance Analysts Have Made A Financial Statement On BTRS Holdings Inc.'s (NASDAQ:BTRS) First-Quarter Report
It's been a sad week for BTRS Holdings Inc. (NASDAQ:BTRS), who've watched their investment drop 16% to US$12.34 in the week since the company reported its first-quarter result. It was a pretty bad result overall; while revenues were in line with expectations at US$31m, statutory losses exploded to US$0.16 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for BTRS Holdings
After the latest results, the seven analysts covering BTRS Holdings are now predicting revenues of US$127.4m in 2021. If met, this would reflect a solid 9.5% improvement in sales compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 93% to US$0.64. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$130.9m and losses of US$0.16 per share in 2021. So it's pretty clear the analysts have mixed opinions on BTRS Holdings after this update; revenues were downgraded and per-share losses expected to increase.
There was no major change to the consensus price target of US$19.57, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic BTRS Holdings analyst has a price target of US$23.00 per share, while the most pessimistic values it at US$15.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await BTRS Holdings shareholders.
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 pretty clear that there is an expectation that BTRS Holdings' revenue growth will slow down substantially, with revenues to the end of 2021 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past year. Compare this to the 443 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 13% per year. So it's pretty clear that, while BTRS Holdings' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Sadly, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for BTRS Holdings going out to 2023, and you can see them free on our platform here..
Don't forget that there may still be risks. For instance, we've identified 2 warning signs for BTRS Holdings that you should be aware of.
This article by Simply Wall St is general in nature. 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.
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