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Smart Parking Limited (ASX:SPZ) Released Earnings Last Week And Analysts Lifted Their Price Target To AU$0.50

Last week, you might have seen that Smart Parking Limited (ASX:SPZ) released its half-year result to the market. The early response was not positive, with shares down 4.7% to AU$0.41 in the past week. Smart Parking reported in line with analyst predictions, delivering revenues of AU$26m and statutory earnings per share of AU$0.018, suggesting the business is executing well and in line with its plan. 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. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

View our latest analysis for Smart Parking

earnings-and-revenue-growth
earnings-and-revenue-growth

Taking into account the latest results, the most recent consensus for Smart Parking from solitary analyst is for revenues of AU$58.3m in 2024. If met, it would imply a decent 17% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 39% to AU$0.027. Yet prior to the latest earnings, the analyst had been anticipated revenues of AU$56.1m and earnings per share (EPS) of AU$0.03 in 2024. While next year's revenue estimates increased, there was also a real cut to EPS expectations, suggesting the consensus has a bit of a mixed view of these results.

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Curiously, the consensus price target rose 14% to AU$0.50. We can only conclude that the forecast revenue growth is expected to offset the impact of the expected fall in earnings.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analyst is definitely expecting Smart Parking's growth to accelerate, with the forecast 37% annualised growth to the end of 2024 ranking favourably alongside historical growth of 16% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Smart Parking to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Smart Parking. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

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 2026, which can be seen for free on our platform here.

Before you take the next step you should know about the 1 warning sign for Smart Parking that we have uncovered.

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.