Shareholders will be ecstatic, with their stake up 23% over the past week following Clarivate Plc's (NYSE:CLVT) latest first-quarter results. The results don't look great, especially considering that statutory losses grew 67% toUS$0.15 per share. Revenues of US$594m did beat expectations by 4.1%, but it looks like a bit of a cold comfort. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus, from the nine analysts covering Clarivate, is for revenues of US$2.35b in 2025. This implies a small 6.9% reduction in Clarivate's revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 76% to US$0.24. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$2.35b and losses of US$0.17 per share in 2025. 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.

See our latest analysis for Clarivate

The consensus price target held steady at US$5.31, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. 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 Clarivate analyst has a price target of US$7.00 per share, while the most pessimistic values it at US$4.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 9.1% by the end of 2025. This indicates a significant reduction from annual growth of 17% 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 6.9% annually for the foreseeable future. It's pretty clear that Clarivate's revenues are expected to perform substantially worse than the wider industry.

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The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Clarivate. 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. The consensus price target held steady at US$5.31, with the latest estimates not enough to have an impact on their price targets.

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. At Simply Wall St, we have a full range of analyst estimates for Clarivate going out to 2027, and you can see them free on our platform here..

You can also see whether Clarivate is carrying too much debt, and whether its balance sheet is healthy, for free  on our platform here.

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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.

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