Yahoo Finance Vocera Communications, Inc. Annual Results: Here's What Analysts Are Forecasting For Next Year
Investors in Vocera Communications, Inc. (NYSE:VCRA) had a good week, as its shares rose 9.8% to close at US$24.19 following the release of its full-year results. The results overall were pretty much dead in line with analyst forecasts; revenues were US$181m and statutory losses were US$0.57 per share. 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. So we gathered the latest post-earnings forecasts to see what analysts' statutory forecasts suggest is in store for next year.
See our latest analysis for Vocera Communications
Taking into account the latest results, the latest consensus from Vocera Communications's ten analysts is for revenues of US$192.3m in 2020, which would reflect a modest 6.5% improvement in sales compared to the last 12 months. Yet prior to the latest earnings, analysts had been forecasting revenues of US$191.6m and losses of US$0.45 per share in 2020. Analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.
The consensus price target held steady at US$24.70, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. The consensus price target just an average of individual analyst targets, so - considering that the price target changed, it would be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Vocera Communications at US$28.00 per share, while the most bearish prices it at US$21.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that analysts have a clear view on its prospects.
Another way to assess these estimates is by comparing them to past performance, and seeing whether analysts are more or less bullish relative to other companies in the market. We would highlight that Vocera Communications's revenue growth is expected to slow, with forecast 6.5% increase next year well below the historical 15%p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the market, which are in aggregate expected to see revenue growth of 15% next year. So it's pretty clear that, while revenue growth is expected to slow down, analysts still expect the wider market to grow faster than Vocera Communications.
The Bottom Line
The most important thing to take away is that analysts reconfirmed their loss per share estimates for next year. On the plus side, there were no major changes to revenue estimates; although analyst forecasts imply revenues will perform worse than the wider market. 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 in mind, we wouldn't be too quick to come to a conclusion on Vocera Communications. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Vocera Communications analysts - going out to 2024, and you can see them free on our platform here.
We also provide an overview of the Vocera Communications Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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