Shareholders of AudioEye, Inc. (NASDAQ:AEYE) will be pleased this week, given that the stock price is up 17% to US$6.80 following its latest quarterly results. It looks like the results were pretty good overall. While revenues of US$7.6m were in line with analyst predictions, statutory losses were much smaller than expected, with AudioEye losing US$0.23 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for AudioEye

Taking into account the latest results, the most recent consensus for AudioEye from two analysts is for revenues of US$30.4m in 2022 which, if met, would be a meaningful 12% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 26% to US$1.03. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$30.3m and losses of US$1.32 per share in 2022. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading revenues and making a very favorable reduction to losses per share in particular.

The average price target rose 12% to US$9.50, with the analysts signalling that the forecast reduction in losses would be a positive for the stock's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the AudioEye's past performance and to peers in the same industry. We would highlight that AudioEye's revenue growth is expected to slow, with the forecast 25% annualised growth rate until the end of 2022 being well below the historical 44% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% annually. So it's pretty clear that, while AudioEye's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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 sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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. At least one analyst has provided forecasts out to 2023, which can be seen for free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 4 warning signs for AudioEye (1 can't be ignored) you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.