It’s been a sad week for BTRS Holdings Inc. (NASDAQ: BTRS), which saw their investment drop 16% to US $ 12.34 in the week since the company released its first quarter results. It was a pretty bad result overall; While income was on target at US $ 31 million, statutory losses exploded to US $ 0.16 per share. Analysts usually update their forecasts with each earnings report, and we can judge from their estimates whether their view of the business has changed or if there are new concerns to consider. With that in mind, we’ve put together the latest statutory forecast to see what analysts expect for next year.
After the latest results, the seven analysts covering BTRS Holdings are now forecasting revenues of US $ 127.4 million in 2021. If achieved, that would reflect a solid 9.5% improvement in sales from the past 12 months . The loss per share is expected to decline significantly in the near future, narrowing 93% to US $ 0.64. Yet before the latest results, analysts were forecasting revenues of US $ 130.9 million and losses of US $ 0.16 per share in 2021. So it’s pretty clear that analysts have mixed opinions on BTRS Holdings afterwards. this update; earnings have been lowered and losses per share are expected to increase.
There were no major changes to the consensus price target of US $ 19.57, signaling that the company is performing roughly as expected, despite weaker earnings per share expectations. It might also be instructive to look at the range of analysts’ estimates, to gauge how different outliers are from the average. The most bullish analyst at BTRS Holdings has a price target of US $ 23.00 per share, while the most pessimistic puts it at US $ 15.00. Analysts certainly have differing views on the company, but the variation in estimates is not wide enough in our view to suggest that extreme results could await BTRS Holdings shareholders.
Another way to view these estimates is in the context of the bigger picture, such as how the forecast compares to past performance and whether the forecast is more or less bullish relative to other companies in the industry. It’s pretty clear that BTRS Holdings’s revenue growth is expected to slow significantly, revenue by the end of 2021 is expected to grow 13% on an annualized basis. This is compared to a historic growth rate of 18% over the past year. Compare that to the other 443 companies in this industry with analyst coverage, which are expected to increase their revenues by 13% per year. So it’s pretty clear that while BTRS Holdings’ revenue growth is expected to slow, it is expected to grow roughly in line with the industry.
The bottom line
The most important thing to remember is that analysts have increased their estimates of loss per share for the next year. Unfortunately, they also lowered their sales forecasts, but the business is still expected to grow at about the same rate as the industry itself. There has been no real change to the consensus price target, suggesting that the intrinsic value of the company has not undergone any major changes with the latest estimates.
That said, the company’s long-term earnings trajectory is much bigger than next year. At Simply Wall St, we have a full range of analyst estimates for BTRS Holdings through 2023, and you can see them for free on our platform here..
Remember that there can still be risks. For example, we have identified 2 warning signs for BTRS Holdings that you need to be aware of.
This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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