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Clarivate Plc (NYSE:CLVT) Third-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For Next Year
The investors in Clarivate Plc's (NYSE:CLVT) will be rubbing their hands together with glee today, after the share price leapt 35% to US$2.33 in the week following its quarterly results. It was a pretty bad result overall; while revenues were in line with expectations at US$482m, statutory losses exploded to US$0.04 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Following the recent earnings report, the consensus from four analysts covering Clarivate is for revenues of US$2.01b in 2027. This implies a considerable 16% decline in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 38% to US$0.11. Before this latest report, the consensus had been expecting revenues of US$2.02b and US$0.085 per share in losses. So it's pretty clear the analysts have mixed opinions on Clarivate even after this update; although they reconfirmed their revenue numbers, it came at the cost of a considerable increase to per-share losses.
View our latest analysis for Clarivate
As a result, there was no major change to the consensus price target of US$3.04, 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. The most optimistic Clarivate analyst has a price target of US$5.50 per share, while the most pessimistic values it at US$1.50. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
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. We would highlight that revenue is expected to reverse, with a forecast 13% annualised decline to the end of 2027. That is a notable change from historical growth of 2.1% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.1% per year. It's pretty clear that Clarivate's revenues are expected to perform substantially worse 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Clarivate's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Clarivate analysts - going out to 2028, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with Clarivate .
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