It's been a good week for Jamf Holding Corp. (NASDAQ:JAMF) shareholders, because the company has just released its latest second-quarter results, and the shares gained 5.8% to US$25.86. It was a pretty bad result overall; while revenues were in line with expectations at US$116m, statutory losses exploded to US$0.53 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for Jamf Holding
NasdaqGS:JAMF Earnings and Revenue Growth August 7th 2022Taking into account the latest results, the most recent consensus for Jamf Holding from ten analysts is for revenues of US$476.1m in 2022 which, if met, would be a meaningful 12% increase on its sales over the past 12 months. Per-share losses are predicted to creep up to US$1.26. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$474.8m and losses of US$1.23 per share in 2022. So it's pretty clear consensus is mixed on Jamf Holding after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a moderate increase in per-share loss expectations.
As a result, there was no major change to the consensus price target of US$34.50, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. 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 Jamf Holding at US$41.00 per share, while the most bearish prices it at US$26.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Jamf Holding's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 26% growth on an annualised basis. This is compared to a historical growth rate of 35% over the past year. 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 Jamf Holding'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 increased 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. The consensus price target held steady at US$34.50, with the latest estimates not enough to have an impact on their price targets.
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 estimates - from multiple Jamf Holding analysts - going out to 2024, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Jamf Holding that you need to take into consideration.
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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.