Sarcos Technology and Robotics Corporation (NASDAQ:STRC) Just Reported And Analysts Have Been Cutting Their Estimates
Sarcos Technology and Robotics Corporation (NASDAQ:STRC) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. It looks to have been a weak result overall, as sales of US$2.3m were 28% less than the analysts expected. Unsurprisingly, losses were also somewhat larger than was modeled, at US$0.14 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 the 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.
Check out our latest analysis for Sarcos Technology and Robotics
Taking into account the latest results, the current consensus from Sarcos Technology and Robotics’ three analysts is for revenues of US$23.4m in 2023, which would reflect a sizeable 45% increase on its sales over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 55% to US$0.47. Before this earnings announcement, the analysts had been modeling revenues of US$26.7m and losses of US$0.48 per share in 2023. So there’s been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also reducing the estimated losses the business will incur.
The consensus price target fell 20% to US$2.75, with the dip in revenue estimates clearly souring sentiment, despite the forecast reduction in 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 Sarcos Technology and Robotics at US$4.25 per share, while the most bearish prices are at US$2.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Sarcos Technology and Robotics’ revenue growth is expected to be slow, with the forecast 64% annualized growth rate until the end of 2023 being well below the historical 301% growth over the last year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.9% annually. Even after the forecast slowdown in growth, it seems obvious that Sarcos Technology and Robotics is also expected to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that analysts made no changes to their forecasts for a loss next year. They also downgraded their revenue estimates, although industry data suggests that Sarcos Technology and Robotics’ revenues are expected to grow faster than the wider industry. Yet – earnings are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. We have estimates – from multiple Sarcos Technology and Robotics analysts – going out to 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 Sarcos Technology and Robotics .
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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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