US$52.64 – That's What Analysts Think SailPoint Technologies Holdings, Inc. (NYSE:SAIL) Is Worth After These Results
SailPoint Technologies Holdings, Inc. (NYSE:SAIL) investors will be delighted, with the company turning in some strong numbers with its latest results. SailPoint Technologies Holdings outperformed on both revenues and the expected loss per share, with revenues of US$94m beating estimates by 13%. Statutory losses were US$0.01, 94% smaller thanthe analysts expected. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for SailPoint Technologies Holdings
Following the latest results, SailPoint Technologies Holdings’ 14 analysts are now forecasting revenues of US$396.7m in 2021. This would be a decent 13% improvement in sales compared to the last 12 months. Losses are forecast to balloon 5,318% to US$0.38 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$385.4m and losses of US$0.36 per share in 2021. Overall it looks as though the analysts were a bit mixed on the latest consensus updates. Although there was a nice uplift to revenue, the consensus also made a to its losses per share forecasts.
It will come as a surprise to learn that the consensus price target rose 16% to US$52.64, with the analysts clearly more interested in growing revenue, even as losses intensify. 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. The most optimistic SailPoint Technologies Holdings analyst has a price target of US$60.00 per share, while the most pessimistic values it at US$36.00. 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 SailPoint Technologies Holdings shareholders.
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. It’s pretty clear that there is an expectation that SailPoint Technologies Holdings’ revenue growth will slow down substantially, with revenues next year expected to grow 13%, compared to a historical growth rate of 24% over the past five years. Compare this to the 418 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 13% per year. So it’s pretty clear that, while SailPoint Technologies Holdings’ revenue growth is expected to slow, it’s expected to grow roughly in line with the industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. They also upgraded their revenue forecasts, although the latest estimates suggest that SailPoint Technologies Holdings will grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for SailPoint Technologies Holdings going out to 2022, and you can see them free on our platform here..
And what about risks? Every company has them, and we’ve spotted 3 warning signs for SailPoint Technologies Holdings (of which 1 is significant!) you should know about.
This article by Simply Wall St is general in nature. 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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