Rekor Systems, Inc. (NASDAQ:REKR) just released its latest quarterly report and things are not looking great. Statutory earnings fell substantially short of expectations, with revenues of US$11m missing forecasts by 25%. Losses exploded, with a per-share loss of US$0.14 some 75% below prior forecasts. 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.
Following the latest results, Rekor Systems' twin analysts are now forecasting revenues of US$64.5m in 2025. This would be a major 47% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 65% to US$0.20. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$83.9m and losses of US$0.17 per share in 2025. So there's been quite a change-up of views after the recent consensus updates, withthe analysts making a serious cut to their revenue outlook while also expecting losses per share to increase.
The average price target lifted 5.9% to US$4.50, clearly signalling that the weaker revenue and EPS outlook are not expected to weigh on the stock over the longer term.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Rekor Systems'historical trends, as the 36% annualised revenue growth to the end of 2025 is roughly in line with the 40% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 12% annually. So although Rekor Systems is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Rekor Systems (1 shouldn't be ignored) 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.
