It's been a good week for Family Zone Cyber Safety Limited (ASX:FZO) shareholders, because the company has just released its latest full-year results, and the shares gained 6.9% to AU$0.39. It was a pretty bad result overall; while revenues were in line with expectations at AU$45m, statutory losses exploded to AU$0.092 per share. The analyst 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 analyst is expecting for next year.
Taking into account the latest results, the most recent consensus for Family Zone Cyber Safety from sole analyst is for revenues of AU$82.5m in 2023 which, if met, would be a major 83% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 65% to AU$0.025. Before this latest report, the consensus had been expecting revenues of AU$82.5m and AU$0.026 per share in losses. It looks like there's been a modest increase in sentiment in the recent updates, with the analyst becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers were unchanged.
The consensus price target fell 20% to AU$0.66despite the forecast for smaller losses next year. It looks like the ongoing lack of profitability is starting to weigh on valuations.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analyst is definitely expecting Family Zone Cyber Safety's growth to accelerate, with the forecast 83% annualised growth to the end of 2023 ranking favourably alongside historical growth of 61% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 16% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Family Zone Cyber Safety is expected to grow much faster than its industry.
The Bottom Line
The most obvious conclusion is that the analyst made no changes to their forecasts for a loss next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Family Zone Cyber Safety's future valuation.
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. We have analyst estimates for Family Zone Cyber Safety going out as far as 2025, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with Family Zone Cyber Safety .
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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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