Earnings Update: Here's Why Analysts Just Lifted Their AudioEye, Inc. (NASDAQ:AEYE) Price Target To US$32.38

Simply Wall St.
10 Nov 2024

Shareholders will be ecstatic, with their stake up 48% over the past week following AudioEye, Inc.'s (NASDAQ:AEYE) latest quarterly results. It was a pretty bad result overall; while revenues were in line with expectations at US$8.9m, statutory losses exploded to US$0.10 per share. 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.

View our latest analysis for AudioEye

NasdaqCM:AEYE Earnings and Revenue Growth November 10th 2024

Taking into account the latest results, the consensus forecast from AudioEye's four analysts is for revenues of US$42.7m in 2025. This reflects a major 28% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with AudioEye forecast to report a statutory profit of US$0.17 per share. Before this earnings report, the analysts had been forecasting revenues of US$41.5m and earnings per share (EPS) of US$0.077 in 2025. So it seems there's been a definite increase in optimism about AudioEye's future following the latest results, with a considerable lift to the earnings per share forecasts in particular.

It will come as no surprise to learn that the analysts have increased their price target for AudioEye 14% to US$32.38on the back of these upgrades. 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. Currently, the most bullish analyst values AudioEye at US$35.00 per share, while the most bearish prices it at US$28.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting AudioEye is an easy business to forecast or the the analysts are all using similar assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 22% growth on an annualised basis. That is in line with its 19% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 12% per year. So it's pretty clear that AudioEye is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around AudioEye's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for AudioEye going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with AudioEye .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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