The investors in LiveVox Holdings, Inc.'s (NASDAQ:LVOX) will be rubbing their hands together with glee today, after the share price leapt 41% to US$2.79 in the week following its quarterly results. It was a moderately negative result overall - revenue fell 2.3% short of analyst estimates at US$33m, and statutory losses were in line with analyst expectations, at US$0.12 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
After the latest results, the six analysts covering LiveVox Holdings are now predicting revenues of US$138.5m in 2022. If met, this would reflect a solid 8.6% improvement in sales compared to the last 12 months. Losses are supposed to decline, shrinking 18% from last year to US$0.42. Before this latest report, the consensus had been expecting revenues of US$140.6m and US$0.47 per share in losses. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading revenues and making a cut to losses per share in particular.
Even with the lower forecast losses, the analysts lowered their valuations, with the average price target falling 14% to US$3.96. It looks likethe analysts have become less optimistic about the overall business. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic LiveVox Holdings analyst has a price target of US$7.50 per share, while the most pessimistic values it at US$2.00. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of LiveVox Holdings'historical trends, as the 18% annualised revenue growth to the end of 2022 is roughly in line with the 15% annual revenue growth over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 13% per year. So it's pretty clear that LiveVox Holdings is forecast to grow substantially faster than its industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for LiveVox Holdings going out to 2024, and you can see them free on our platform here..
Plus, you should also learn about the 3 warning signs we've spotted with LiveVox Holdings .
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