Yahoo Finance The Glimpse Group, Inc. (NASDAQ:VRAR) Reported Earnings Last Week And Analysts Are Already Upgrading Their Estimates
The Glimpse Group, Inc. (NASDAQ:VRAR) just released its quarterly report and things are looking bullish. The results were impressive, with revenues of US$2.1m exceeding analyst forecasts by 60%, and statutory losses of US$0.04 were likewise much smaller than the analyst had forecast. The analyst 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. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.
See our latest analysis for Glimpse Group
After the latest results, the consensus from Glimpse Group's solitary analyst is for revenues of US$10.4m in 2024, which would reflect a not inconsiderable 12% decline in revenue compared to the last year of performance. The loss per share is expected to greatly reduce in the near future, narrowing 75% to US$0.38. Before this earnings announcement, the analyst had been modelling revenues of US$9.20m and losses of US$0.40 per share in 2024. We can see there's definitely been a change in sentiment in this update, with the analyst administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.
The consensus price target fell 27%, to US$1.99, suggesting that the analyst remain pessimistic on the company, despite the improved earnings and revenue outlook.
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. We would highlight that revenue is expected to reverse, with a forecast 22% annualised decline to the end of 2024. That is a notable change from historical growth of 52% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 10% per year. It's pretty clear that Glimpse Group's revenues are expected to perform substantially worse 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. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Glimpse Group's future valuation.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.
And what about risks? Every company has them, and we've spotted 5 warning signs for Glimpse Group (of which 1 makes us a bit uncomfortable!) you should know about.
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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.
