Shareholders of One Stop Systems, Inc. (NASDAQ:OSS) will be pleased this week, given that the stock price is up 16% to US$2.67 following its latest quarterly results. The results don't look great, especially considering that statutory losses grew 256% toUS$0.32 per share. Revenues of US$14m did beat expectations by 2.9%, 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for One Stop Systems

Taking into account the latest results, the most recent consensus for One Stop Systems from three analysts is for revenues of US$58.5m in 2025. If met, it would imply a decent 11% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 64% to US$0.19. Before this latest report, the consensus had been expecting revenues of US$60.9m and US$0.19 per share in losses. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers fell somewhat.

The consensus price target was broadly unchanged at US$3.83, implying that the business is performing roughly in line with expectations, despite adjustments to both revenue and earnings estimates. 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. Currently, the most bullish analyst values One Stop Systems at US$5.50 per share, while the most bearish prices it at US$2.50. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting One Stop Systems' growth to accelerate, with the forecast 8.7% annualised growth to the end of 2025 ranking favourably alongside historical growth of 2.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.0% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that One Stop Systems is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. They also downgraded One Stop Systems' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Even so, long term profitability is more important for the value creation process. The consensus price target held steady at US$3.83, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for One Stop Systems going out to 2025, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 4 warning signs for One Stop Systems you should be aware of.

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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.