Yahoo Finance urban-gro, Inc. (NASDAQ:UGRO) Just Released Its First-Quarter Results And Analysts Are Updating Their Estimates
It's been a good week for urban-gro, Inc. (NASDAQ:UGRO) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.5% to US$1.93. The results were mixed overall, with revenues slightly ahead of analyst estimates at US$16m. Statutory losses by contrast were 5.9% larger than predictions at US$0.18 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for urban-gro
Taking into account the latest results, the current consensus from urban-gro's four analysts is for revenues of US$82.0m in 2024. This would reflect a decent 17% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 64% to US$0.46. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$81.8m and losses of US$0.43 per share in 2024. So it's pretty clear consensus is mixed on urban-gro after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a moderate increase in per-share loss expectations.
The consensus price target held steady at US$4.64, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. 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 urban-gro analyst has a price target of US$8.00 per share, while the most pessimistic values it at US$3.00. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 23% growth on an annualised basis. That is in line with its 27% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.6% annually. So although urban-gro is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$4.64, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple urban-gro analysts - going out to 2026, 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 urban-gro (1 is 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.
