One Stop Systems, Inc. (NASDAQ:OSS) shareholders are likely a little disappointed as shares fell 9.3% to $1.96 in the week following the release of its latest quarterly results. Revenues came in line with expectations at $13 million, while statutory losses widened to $0.11 per share. Earnings numbers are an important time for investors as they can track a company’s performance, look at what analysts are forecasting for next year, and see if there has been any change in sentiment toward the company. Readers will be pleased to know that we’ve rounded up the latest statutory forecasts to see if analysts have changed their minds about One Stop Systems following the latest results.
Check out our latest analysis for One Stop Systems
Following the latest results, One Stop Systems’ three analysts are now forecasting revenues of $56.4 million in 2024. This would be a credible 6.9% increase in sales compared to the last 12 months. Losses are expected to narrow significantly, shrinking 46% to $0.19. Before this latest report, the consensus had been expecting revenues of $57.6 million and a loss of $0.14 per share. So it’s pretty clear that analysts have mixed opinions on One Stop Systems following this update; revenues have been downgraded and losses per share are expected to increase.
The average price target remained largely unchanged at $3.83, perhaps implicitly suggesting that the weaker earnings outlook is unlikely to have a long-term impact on valuation. However, that’s not the only conclusion we can draw from this data, as some investors also like to consider the range of estimates when evaluating analyst price targets. There are some differing views on One Stop Systems, with the most optimistic analyst estimating the value at $5.50 and the most pessimistic at $2.50 per share. This is a fairly wide range of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the company.
Now, looking at the bigger picture, one of the ways we can understand these forecasts is to evaluate them against both past performance and industry growth estimates. The analysts are definitely expecting an acceleration in One Stop Systems’ growth, with the forecast annual growth of 14% through the end of 2024 comparing favorably to the historical growth of 3.8% per year over the past five years. In contrast, our data suggests that other companies (with analyst coverage) in a similar industry are expected to grow their revenues at a rate of 7.6% per year. Taking the forecast revenue acceleration into account, it’s pretty clear that One Stop Systems is expected to grow at a much faster rate than the industry.
The conclusion
Most importantly, analysts have raised their loss per share estimates for next year. They have also lowered One Stop Systems’ revenue estimates, but industry data suggests the company is expected to grow faster than the wider industry. The consensus price target remained stable at $3.83, with recent estimates not enough to have an impact on their price targets.
However, the long-term development of company earnings is much more important than the next year. We have forecasts for One Stop Systems up to 2025, which you can view for free here on our platform.
Before you get too excited, we found out 4 warning signs for one-stop systems that you should know.
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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.
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