Analyst Estimates: Here's What Brokers Think Of Creative Realities, Inc. (NASDAQ:CREX) After Its Second-Quarter Report
Investors in Creative Realities, Inc. (NASDAQ:CREX) had a good week, as its shares rose 8.6% to close at US$3.28 following the release of its second-quarter results. It was a pretty bad result overall; while revenues were in line with expectations at US$22m, statutory losses exploded to US$0.41 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 next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following the latest results, Creative Realities' three analysts are now forecasting revenues of US$100.7m in 2026. This would be a huge 39% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 33% to US$1.09. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$101.6m and losses of US$0.53 per share in 2026. So it's pretty clear the analysts have mixed opinions on Creative Realities even after this update; although they reconfirmed their revenue numbers, it came at the cost of a sizeable expansion in per-share losses.
See our latest analysis for Creative Realities
As a result, there was no major change to the consensus price target of US$8.33, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. 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. There are some variant perceptions on Creative Realities, with the most bullish analyst valuing it at US$10.00 and the most bearish at US$7.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Creative Realities shareholders.
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. It's clear from the latest estimates that Creative Realities' rate of growth is expected to accelerate meaningfully, with the forecast 94% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 20% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Creative Realities is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$8.33, 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 Creative Realities going out to 2027, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 4 warning signs for Creative Realities 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.