Yahoo Finance Analyst Estimates: Here's What Brokers Think Of Samsara Inc. (NYSE:IOT) After Its Third-Quarter Report
Samsara Inc. (NYSE:IOT) defied analyst predictions to release its quarterly results, which were ahead of market expectations. Results overall were solid, with revenues arriving 9.3% better than analyst forecasts at US$170m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.11 per share, were 9.3% smaller than the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Samsara
Taking into account the latest results, the most recent consensus for Samsara from nine analysts is for revenues of US$814.2m in 2024 which, if met, would be a sizeable 38% increase on its sales over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 42% to US$0.50. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$793.3m and losses of US$0.43 per share in 2024. So it's pretty clear the analysts have mixed opinions on Samsara even after this update; although they upped their revenue numbers, it came at the cost of a notable increase in per-share losses.
There was no major change to the consensus price target of US$17.63, with growing revenues seemingly enough to offset the concern of growing losses. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Samsara at US$22.00 per share, while the most bearish prices it at US$15.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Samsara's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 29% growth on an annualised basis. This is compared to a historical growth rate of 43% over the past three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 13% per year. So it's pretty clear that, while Samsara's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Samsara. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. 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 Samsara. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Samsara going out to 2025, and you can see them free on our platform here..
Plus, you should also learn about the 2 warning signs we've spotted with Samsara .
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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.
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