It’s been a good week for indie Semiconductor, Inc. (NASDAQ:INDI) shareholders as the company just released its latest second-quarter results, and shares gained 6.3% to US$8.10. The results seem to have been pretty good overall. While revenue of US$26 million was in line with analysts’ expectations, statutory losses were much lower than expected, with Independent Semiconductor losing US$0.04 per share. Earnings are an important time for investors because they can follow a company’s performance, watch what analysts predict for the next year, and see if there has been a change in sentiment towards the company. So we’ve rounded up the latest post-earnings guidance to see what the estimates suggest for next year.
Check out our latest analysis for indie Semiconductor
Given the latest results, the consensus forecast from six Indie Semiconductor analysts calls for revenue of $111.8 million in 2022, which would reflect a huge 42% improvement in sales over the past 12 months. Losses are expected to drop significantly, narrowing 26% to US$0.61. Prior to this latest report, consensus had expected revenue of $111.8 million and losses of $0.61 per share.
The consensus price target remained unchanged at US$14.17, suggesting the business – losses and all – is performing in line with estimates. This is not the only conclusion we can draw from this data, however, as some investors also like to take into account the discrepancy in estimates when evaluating analyst price targets. There are some different perceptions on the Semiconductor indie, with the most bullish analyst pricing it at US$20.00 and the most bearish at US$8.00 per share. Notice the wide gap between analyst price targets? This implies to us that there is a fairly wide range of possible scenarios for the underlying activity.
These estimates are interesting, but it can be useful to draw broader lines when seeing how the predictions compare, both to the independent semiconductor’s past performance and to its peers in the same industry. It’s pretty clear that Indie Semiconductor’s revenue growth is expected to slow significantly, with revenue through the end of 2022 expected to show 101% growth on an annualized basis. This is compared to an historic growth rate of 150% over the past year. By comparison, other companies in this sector covered by analysts are expected to grow their revenue by 8.4% per year. Even after the expected slowdown in growth, it seems clear that independent semiconductors are also expected to grow faster than the broader industry.
The most obvious conclusion is that analysts have made no changes to their loss forecast for next year. Fortunately, they have also reconfirmed their revenue figures, suggesting sales are in line with expectations – and our data suggests revenue is set to grow faster than the industry as a whole. There was no real change from the consensus price target, suggesting that the company’s intrinsic value has not undergone major changes with the latest estimates.
That said, the company’s long-term earnings trajectory is much more important than next year. We have estimates – from several independent Semiconductor analysts – going out to 2024, and you can see them for free on our platform here.
However, before you get too excited, we found out 1 warning sign for indie Semiconductor which you should be aware of.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
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