The Joint Corp. Just Missed Earnings With A Surprise Loss - Here Are Analysts Latest Forecasts

In This Article:

Investors in The Joint Corp. (NASDAQ:JYNT) had a good week, as its shares rose 4.8% to close at US$11.61 following the release of its quarterly results. Revenues of US$30m beat expectations by 6.4%. Unfortunately statutory earnings per share (EPS) fell well short of the mark, turning in a loss of US$0.21 compared to previous analyst expectations of a profit. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Joint after the latest results.

Check out our latest analysis for Joint

earnings-and-revenue-growth
NasdaqCM:JYNT Earnings and Revenue Growth November 9th 2024

After the latest results, the consensus from Joint's five analysts is for revenues of US$103.6m in 2025, which would reflect a chunky 14% decline in revenue compared to the last year of performance. Joint is also expected to turn profitable, with statutory earnings of US$0.39 per share. Before this earnings report, the analysts had been forecasting revenues of US$102.5m and earnings per share (EPS) of US$0.39 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$16.38, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on Joint, with the most bullish analyst valuing it at US$20.00 and the most bearish at US$10.50 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 would highlight that revenue is expected to reverse, with a forecast 12% annualised decline to the end of 2025. That is a notable change from historical growth of 20% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.6% annually for the foreseeable future. It's pretty clear that Joint's revenues are expected to perform substantially worse than the wider industry.

Waiting for permission
Allow microphone access to enable voice search

Try again.