Sprinklr, Inc. (NYSE:CXM) Just Reported Yearly Earnings: Have Analysts Changed Their Mind On The Stock?

It's been a pretty great week for Sprinklr, Inc. (NYSE:CXM) shareholders, with its shares surging 15% to US$13.79 in the week since its latest yearly results. Sales hit US$492m in line with forecasts, although the company reported a statutory loss per share of US$0.57 that was somewhat smaller than the 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Sprinklr

Taking into account the latest results, the consensus forecast from Sprinklr's nine analysts is for revenues of US$605.0m in 2023, which would reflect a sizeable 23% improvement in sales compared to the last 12 months. Per-share losses are predicted to creep up to US$0.47. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$587.4m and losses of US$0.46 per share in 2023. So it's pretty clear consensus is mixed on Sprinklr after the new consensus numbers; while the analysts lifted revenue numbers, they also administered a pronounced increase to per-share loss expectations.

There was no major change to the consensus price target of US$17.13, with growing revenues seemingly enough to offset the concern of growing losses. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Sprinklr analyst has a price target of US$22.00 per share, while the most pessimistic values it at US$12.00. 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 Sprinklr shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 23% growth on an annualised basis. That is in line with its 27% annual growth over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 14% per year. So although Sprinklr 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$17.13, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Sprinklr. Long-term earnings power is much more important than next year's profits. We have forecasts for Sprinklr going out to 2025, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for Sprinklr (1 is potentially serious!) that we have uncovered.

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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.