As you might know, Rekor Systems, Inc. (NASDAQ:REKR) last week released its latest quarterly, and things did not turn out so great for shareholders. Statutory earnings fell substantially short of expectations, with revenues of US$11m missing forecasts by 25%. Losses exploded, with a per-share loss of US$0.14 some 75% below prior forecasts. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Rekor Systems after the latest results.

Check out our latest analysis for Rekor Systems

Taking into account the latest results, the most recent consensus for Rekor Systems from dual analysts is for revenues of US$64.5m in 2025. If met, it would imply a huge 47% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 65% to US$0.20. Before this latest report, the consensus had been expecting revenues of US$83.9m and US$0.17 per share in losses. So there's been quite a change-up of views after the recent consensus updates, withthe analysts making a serious cut to their revenue outlook while also expecting losses per share to increase.

The average price target lifted 5.9% to US$4.50, clearly signalling that the weaker revenue and EPS outlook are not expected to weigh on the stock over the longer term.

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 period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 36% growth on an annualised basis. That is in line with its 40% annual growth 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 revenues grow 12% per year. So although Rekor Systems is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Rekor Systems. They also downgraded Rekor Systems' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Rekor Systems. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Rekor Systems going out as far as 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Rekor Systems has 3 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.