What to Expect From Clarivate’s Upcoming Q3 Results?
RBC Capital analysts provided their outlook on Clarivate (NYSE:CLVT) ahead of the upcoming Q3/22 earnings, trimming their H2/22 and fiscal 2023 estimates to account for incremental FX headwinds, higher interest expense, and a more cautious view on transactional revenues, given the potential economic slowdown.
Accordingly, the analysts lowered their 2022/2023 EPS estimates to $0.80/$0.83, below the Street estimates of $0.85/ $0.95, and reduced their price target to $13 from $16.
Although the company lowered organic growth for Q3/22 to approximately 3%, the analysts believe the company should also de-risk organic growth expectations for Q4/22 and 2023 in light of the challenging macro environment.
| Symbol | Price | %chg |
|---|---|---|
| DCII.JK | 40000 | 0 |
| TCS.NS | 4553.75 | 0 |
| TCS.BO | 4551.85 | 0 |
| 018260.KS | 150700 | 0 |
Clarivate’s Q2 Earnings Preview
Oppenheimer analysts provided their outlook on Clarivate Plc (NYSE:CLVT) ahead of the upcoming Q2 earnings, expecting the company to deliver on the 5.5% organic growth guidance driven by improved pricing, retention, and cross-sell.
However, the analysts stated that they monitor transactional revenues in the second half of 2022 given the potential of an economic slowdown. Separately, FX headwinds could also weigh on revenues given exposure to EMEA (approximately 30% of revenues) and Asia (approximately 21% of revenues).
The analysts lowered their 2022/2023 EPS estimates to $0.84/$1.00, below the Street estimates of $0.90/$1.07, and reduced their price target to $18 from $23. However, the analysts reiterated their outperform rating given the defensive business model, longer-term secular trends, and benefit from the One Clarivate initiative.
Clarivate’s 2022 Outlook
Analysts at RBC Capital provided their outlook on Clarivate Plc (NYSE:CLVT), stating that the company sets up well for 2022 given its organic growth inflection to 6-8% driven by sales reorganization, optimized product bundles, robust NPI driven by Cloud and AI/ML, and lapping of DRG and CPA Global acquisitions.
The analysts estimate the highly accretive ProQuest acquisition will deliver around 34% EPS growth in 2022 and 24% in 2023 while the complementary content and software solutions should enable cross-sell/up-sell opportunities.
