Last week saw the newest yearly earnings release from Clarivate Plc (NYSE:CLVT), an important milestone in the company's journey to build a stronger business. It was a pretty bad result overall; while revenues were in line with expectations at US$2.6b, statutory losses exploded to US$0.96 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Clarivate

Following the recent earnings report, the consensus from nine analysts covering Clarivate is for revenues of US$2.39b in 2025. This implies a measurable 6.5% decline in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 89% to US$0.11. Before this earnings announcement, the analysts had been modelling revenues of US$2.55b and losses of US$0.054 per share in 2025. So it's pretty clear the analysts have mixed opinions on Clarivate after this update; revenues were downgraded and per-share losses expected to increase.

There was no major change to the consensus price target of US$6.00, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Clarivate, with the most bullish analyst valuing it at US$8.00 and the most bearish at US$4.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Clarivate's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 6.5% annualised decline to the end of 2025. That is a notable change from historical growth of 20% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.6% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Clarivate is expected to lag the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Clarivate. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Clarivate going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether Clarivate's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.