Cantaloupe, Inc. (NASDAQ:CTLP) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Cantaloupe reported in line with analyst predictions, delivering revenues of US$71m and statutory earnings per share of US$0.04, suggesting the business is executing well and in line with its plan. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Cantaloupe

After the latest results, the six analysts covering Cantaloupe are now predicting revenues of US$312.2m in 2025. If met, this would reflect a notable 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 77% to US$0.31. In the lead-up to this report, the analysts had been modelling revenues of US$312.7m and earnings per share (EPS) of US$0.30 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 12% to US$11.50, suggesting that higher earnings estimates flow through to the stock's valuation as well. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Cantaloupe analyst has a price target of US$12.00 per share, while the most pessimistic values it at US$10.50. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. The analysts are definitely expecting Cantaloupe's growth to accelerate, with the forecast 17% annualised growth to the end of 2025 ranking favourably alongside historical growth of 13% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Cantaloupe to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Cantaloupe's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Cantaloupe. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Cantaloupe going out to 2026, and you can see them free on our platform here..

You can also view our analysis of Cantaloupe's balance sheet, and whether we think Cantaloupe is carrying too much debt, 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.