Inseego Corp. (NASDAQ:INSG) Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?
A week ago, Inseego Corp. (NASDAQ:INSG) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. Results overall were solid, with revenues arriving 6.6% better than analyst forecasts at US$33m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.49 per share, were 6.6% smaller than the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the most recent consensus for Inseego from three analysts is for revenues of US$170.2m in 2027. If met, it would imply an okay 6.4% increase on its revenue over the past 12 months. Losses are forecast to balloon 486% to US$2.04 per share. Before this earnings announcement, the analysts had been modelling revenues of US$170.2m and losses of US$2.04 per share in 2027.
See our latest analysis for Inseego
The consensus price target was unchanged at US$13.67, suggesting that the business - losses and all - is executing in line with estimates. 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. There are some variant perceptions on Inseego, with the most bullish analyst valuing it at US$18.00 and the most bearish at US$11.00 per share. 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.
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 Inseego is forecast to grow faster in the future than it has in the past, with revenues expected to display 5.1% annualised growth until the end of 2027. If achieved, this would be a much better result than the 12% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 14% annually for the foreseeable future. Although Inseego's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$13.67, with the latest estimates not enough to have an impact on their price targets.
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 Simply Wall St, we have a full range of analyst estimates for Inseego going out to 2027, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 5 warning signs for Inseego (of which 2 are potentially serious!) you should know about.
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