PowerFleet, Inc. Just Missed Earnings With A Surprise Loss - Here Are Analysts Latest Forecasts

There's been a notable change in appetite for PowerFleet, Inc. (NASDAQ:AIOT) shares in the week since its quarterly report, with the stock down 17% to US$4.03. Things were not great overall, with a surprise (statutory) loss of US$0.03 per share on revenues of US$113m, even though the analysts had been expecting a profit. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the seven analysts covering PowerFleet are now predicting revenues of US$482.7m in 2027. If met, this would reflect a notable 11% improvement in revenue compared to the last 12 months. PowerFleet is also expected to turn profitable, with statutory earnings of US$0.078 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$480.9m and earnings per share (EPS) of US$0.14 in 2027. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$10.67, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic PowerFleet analyst has a price target of US$15.00 per share, while the most pessimistic values it at US$8.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the PowerFleet's past performance and to peers in the same industry. It's pretty clear that there is an expectation that PowerFleet's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 9.1% growth on an annualised basis. This is compared to a historical growth rate of 31% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 11% annually. Factoring in the forecast slowdown in growth, it looks like PowerFleet is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for PowerFleet. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$10.67, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for PowerFleet going out to 2028, 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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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.