Yahoo Finance Earnings Update: 1Spatial Plc (LON:SPA) Just Reported Its Full-Year Results And Analysts Are Updating Their Forecasts
Shareholders will be ecstatic, with their stake up 26% over the past week following 1Spatial Plc's (LON:SPA) latest full-year results. Revenues were in line with expectations, at UK£23m, while statutory losses ballooned to UK£0.014 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. 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 1Spatial
After the latest results, the sole analyst covering 1Spatial are now predicting revenues of UK£26.5m in 2021. If met, this would reflect a solid 13% improvement in sales compared to the last 12 months. 1Spatial is also expected to turn profitable, with statutory earnings of UK£0.0014 per share. Yet prior to the latest earnings, the analyst had been anticipated revenues of UK£27.6m and earnings per share (EPS) of UK£0.0067 in 2021. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.
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 1Spatial's rate of growth is expected to accelerate meaningfully, with the forecast 13% revenue growth noticeably faster than its historical growth of 1.1%p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.3% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that 1Spatial is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The forecasts we track have not provided a price target, but the market liked the latest results, with the stock up 26% since last week.
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 1Spatial going out as far as 2021, 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 1Spatial that you should be aware of.
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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. Thank you for reading.
