Yahoo Finance Inspirato Incorporated (NASDAQ:ISPO) Second-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year
Shareholders in Inspirato Incorporated (NASDAQ:ISPO) had a terrible week, as shares crashed 21% to US$3.92 in the week since its latest quarterly results. It looks like the results were pretty good overall. While revenues of US$84m were in line with analyst predictions, statutory losses were much smaller than expected, with Inspirato losing US$0.06 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Inspirato
Taking into account the latest results, the most recent consensus for Inspirato from six analysts is for revenues of US$353.1m in 2022 which, if met, would be a decent 18% 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$0.36. Before this earnings announcement, the analysts had been modelling revenues of US$357.1m and losses of US$0.62 per share in 2022. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading revenues and making a very favorable reduction to losses per share in particular.
The average price target held steady at US$6.50, seeming to indicate that business is performing in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Inspirato analyst has a price target of US$8.00 per share, while the most pessimistic values it at US$5.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Inspirato's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Inspirato's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 39% growth on an annualised basis. This is compared to a historical growth rate of 62% over the past year. 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 Inspirato'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, there were no major changes to revenue forecasts, with the business still expected 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 Inspirato. 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 Inspirato going out to 2024, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 3 warning signs for Inspirato (2 are significant!) that you should be aware of.
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.
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