Investors in PowerFleet, Inc. (NASDAQ:AIOT) had a good week, as its shares rose 3.5% to close at US$2.68 following the release of its quarterly results. It was a pretty bad result overall; while revenues were in line with expectations at US$116m, statutory losses exploded to US$0.05 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the most recent consensus for PowerFleet from seven analysts is for revenues of US$469.8m in 2027. If met, it would imply an okay 3.4% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 41% to US$0.094. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$469.0m and losses of US$0.058 per share in 2027. While this year’s revenue estimates held steady, there was also a considerable increase to loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
See our latest analysis for PowerFleet
The consensus price target held steady at US$8.20, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company’s valuation. That’s not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic PowerFleet analyst has a price target of US$13.00 per share, while the most pessimistic values it at US$5.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
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. We would highlight that PowerFleet’s revenue growth is expected to slow, with the forecast 6.8% annualised growth rate until the end of 2027 being well below the historical 33% 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 15% per year. Factoring in the forecast slowdown in growth, it seems obvious that PowerFleet is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at PowerFleet. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it’s tracking in line with expectations. Although our data does suggest that PowerFleet’s revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$8.20, with the latest estimates not enough to have an impact on their price targets.
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 Simply Wall St, we have a full range of analyst estimates for PowerFleet going out to 2029, and you can see them free on our platform here..
You can also view our analysis of PowerFleet’s balance sheet, and whether we think PowerFleet is carrying too much debt, for free on our platform here.
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