Earnings Update: Asure Software, Inc. (NASDAQ:ASUR) Just Reported And Analysts Are Boosting Their Estimates
As you might know, Asure Software, Inc. (NASDAQ:ASUR) just kicked off its latest third-quarter results with some very strong numbers. Revenues and losses per share were both better than expected, with revenues of US$40m leading estimates by 2.8%. Statutory losses were smaller than the analystsexpected, coming in at US$0.02 per share. 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.
Following the latest results, Asure Software's seven analysts are now forecasting revenues of US$184.5m in 2027. This would be a decent 16% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Asure Software forecast to report a statutory profit of US$0.12 per share. In the lead-up to this report, the analysts had been modelling revenues of US$174.7m and break-even in 2027. So it seems there's been a definite increase in optimism about Asure Software's future following the latest results, with a the earnings per share forecasts in particular.
Check out our latest analysis for Asure Software
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$13.33, suggesting that the forecast performance does not have a long term impact on the company's 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 Asure Software analyst has a price target of US$15.00 per share, while the most pessimistic values it at US$11.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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 can infer from the latest estimates that forecasts expect a continuation of Asure Software'shistorical trends, as the 13% annualised revenue growth to the end of 2027 is roughly in line with the 14% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.1% annually. So although Asure Software 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 here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Asure Software following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at US$13.33, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Asure Software going out to 2028, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for Asure Software you should be aware of.
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