US$6.88: That's What Analysts Think Airgain, Inc. (NASDAQ:AIRG) Is Worth After Its Latest Results
Airgain, Inc. (NASDAQ:AIRG) shareholders are probably feeling a little disappointed, since its shares fell 7.0% to US$3.71 in the week after its latest third-quarter results. Revenues of US$15m arrived in line with expectations, although statutory losses per share were US$0.04, an impressive 29% smaller than what broker models predicted. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Following the latest results, Airgain's four analysts are now forecasting revenues of US$65.8m in 2027. This would be a huge 25% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 88% to US$0.06. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$66.5m and losses of US$0.10 per share in 2027. Although the revenue estimates have not really changed Airgain'sfuture looks a little different to the past, with a very promising decrease in the loss per share forecasts in particular.
See our latest analysis for Airgain
Even with the lower forecast losses, the analysts lowered their valuations, with the average price target falling 23% to US$6.88. It looks likethe analysts have become less optimistic about the overall business. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Airgain analyst has a price target of US$9.00 per share, while the most pessimistic values it at US$4.50. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Airgain's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 19% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 6.3% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 15% per year. Not only are Airgain's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected 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 Airgain's future valuation.
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. We have estimates - from multiple Airgain analysts - going out to 2027, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 2 warning signs for Airgain that you need to be mindful of.
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