Alkami Technology, Inc. (NASDAQ:ALKT) Released Earnings Last Week And Analysts Lifted Their Price Target To US$28.70

Alkami Technology, Inc. (NASDAQ:ALKT) Released Earnings Last Week And Analysts Lifted Their Price Target To US$28.70

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Shareholders might have noticed that Alkami Technology, Inc. (NASDAQ:ALKT) filed its yearly result this time last week. The early response was not positive, with shares down 3.3% to US$24.80 in the past week. Revenues came in at US$265m, in line with forecasts and the company reported a statutory loss of US$0.67 per share, roughly in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. 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 Alkami Technology

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NasdaqGS:ALKT Earnings and Revenue Growth March 2nd 2024

After the latest results, the ten analysts covering Alkami Technology are now predicting revenues of US$330.4m in 2024. If met, this would reflect a substantial 25% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 29% to US$0.46. Before this latest report, the consensus had been expecting revenues of US$331.5m and US$0.50 per share in losses. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for this year.

The average price target rose 7.5% to US$28.70, with the analysts signalling that the forecast reduction in losses would be a positive for the stock's valuation. 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. There are some variant perceptions on Alkami Technology, with the most bullish analyst valuing it at US$31.00 and the most bearish at US$26.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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 can infer from the latest estimates that forecasts expect a continuation of Alkami Technology'shistorical trends, as the 25% annualised revenue growth to the end of 2024 is roughly in line with the 28% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 12% per year. So although Alkami Technology is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.