Yahoo Finance Analysts Have Been Trimming Their Owlet, Inc. (NYSE:OWLT) Price Target After Its Latest Report
Owlet, Inc. (NYSE:OWLT) missed earnings with its latest first-quarter results, disappointing overly-optimistic forecasts. Revenues missed expectations somewhat, coming in at US$15m, but statutory earnings fell catastrophically short, with a loss of US$0.51 some 27% larger than what the analyst had predicted. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Owlet after the latest results.
Check out our latest analysis for Owlet
Following the latest results, Owlet's sole analyst are now forecasting revenues of US$74.4m in 2024. This would be a sizeable 28% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 77% to US$0.57. Yet prior to the latest earnings, the analyst had been forecasting revenues of US$74.7m and losses of US$1.04 per share in 2024. Although the revenue estimate has not really changed Owlet'sfuture looks a little different to the past, with a very favorable reduction to the loss per share forecasts in particular.
The consensus price target fell 44% to US$15.00despite the forecast for smaller losses next year. It looks like the ongoing lack of profitability is starting to weigh on valuations.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that Owlet is forecast to grow faster in the future than it has in the past, with revenues expected to display 39% annualised growth until the end of 2024. If achieved, this would be a much better result than the 21% annual decline over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 8.1% annually. Not only are Owlet's revenues expected to improve, it seems that the analyst is also expecting it to grow faster 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. 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 fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Owlet'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 2026, which can be seen for free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 4 warning signs for Owlet (1 is a bit concerning) 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.
