Yahoo Finance Analysts Are Upgrading Mawson Infrastructure Group, Inc. (NASDAQ:MIGI) After Its Latest Results
As you might know, Mawson Infrastructure Group, Inc. (NASDAQ:MIGI) last week released its latest third-quarter, and things did not turn out so great for shareholders. Revenues missed expectations somewhat, coming in at US$11m, but statutory earnings fell catastrophically short, with a loss of US$1.15 some 195% larger than what the analysts had predicted. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for Mawson Infrastructure Group
Taking into account the latest results, the consensus forecast from Mawson Infrastructure Group's dual analysts is for revenues of US$59.0m in 2024. This reflects a substantial 27% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 60% to US$1.57. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$48.9m and losses of US$2.08 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.
The consensus price target fell 83%, to US$2.00, suggesting that the analysts 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. It's pretty clear that there is an expectation that Mawson Infrastructure Group's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 21% growth on an annualised basis. This is compared to a historical growth rate of 51% 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) 12% per year. So it's pretty clear that, while Mawson Infrastructure Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Mawson Infrastructure Group's future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on Mawson Infrastructure Group. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.
Even so, be aware that Mawson Infrastructure Group is showing 5 warning signs in our investment analysis , and 3 of those are concerning...
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
