There's been a notable change in appetite for CareCloud, Inc. (NASDAQ:CCLD) shares in the week since its quarterly report, with the stock down 19% to US$2.36. The results don't look great, especially considering that statutory losses grew 50% toUS$0.01 per share. Revenues of US$31m did beat expectations by 2.5%, but it looks like a bit of a cold comfort. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Taking into account the latest results, the current consensus from CareCloud's four analysts is for revenues of US$131.1m in 2026. This would reflect a modest 5.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 92% to US$0.20. In the lead-up to this report, the analysts had been modelling revenues of US$131.2m and earnings per share (EPS) of US$0.17 in 2026. Although the revenue estimates have not really changed, we can see there's been a substantial gain in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

There's been no major changes to the consensus price target of US$6.13, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. There are some variant perceptions on CareCloud, with the most bullish analyst valuing it at US$8.00 and the most bearish at US$2.50 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CareCloud's past performance and to peers in the same industry. For example, we noticed that CareCloud's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 7.6% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 4.0% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 10% per year. So although CareCloud's revenue growth is expected to improve, it is still expected to grow slower than the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around CareCloud's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for CareCloud going out to 2027, and you can see them free on our platform here..

We also provide an overview of the CareCloud Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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.