Yahoo Finance The Verra Mobility Corporation (NASDAQ:VRRM) First-Quarter Results Are Out And Analysts Have Published New Forecasts
Investors in Verra Mobility Corporation (NASDAQ:VRRM) had a good week, as its shares rose 7.0% to close at US$25.93 following the release of its quarterly results. It was a pretty mixed result, with revenues beating expectations to hit US$210m. Statutory earnings fell 3.9% short of analyst forecasts, reaching US$0.17 per share. The analysts 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 estimates suggest is in store for next year.
Check out our latest analysis for Verra Mobility
Taking into account the latest results, the current consensus from Verra Mobility's seven analysts is for revenues of US$878.2m in 2024. This would reflect a modest 5.2% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 66% to US$0.81. Before this earnings report, the analysts had been forecasting revenues of US$872.6m and earnings per share (EPS) of US$0.82 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$26.50, showing that the business is executing well and in line with expectations. 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 Verra Mobility, with the most bullish analyst valuing it at US$29.00 and the most bearish at US$22.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Verra Mobility's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 6.9% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past five years. Compare this to the 149 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.7% per year. Factoring in the forecast slowdown in growth, it looks like Verra Mobility is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.
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 forecasts for Verra Mobility going out to 2026, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 3 warning signs for Verra Mobility (1 is a bit concerning!) that you should be aware of.
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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.
