Can CXDO sustain its EPS growth into 2025?
4/9/2025 02:37pm
**Crexendo's (CXDO) potential to sustain EPS growth into 2025 appears promising**, considering the following points:
1. **Consistent Growth Forecast**: Crexendo is forecasted to grow earnings and revenue by 47.4% and 10.8% per annum respectively, while EPS is expected to grow by 43.6% per annum. This indicates a strong growth trajectory that could potentially continue into 2025.
2. **Recent Performance and Upcoming Quarters**: Crexendo's stock has seen a significant surge, partly due to its strong Q4 2024 earnings. The company surpassed analysts’ expectations with an EPS of $0.06 compared to the $0.05 projection. Looking ahead, the consensus EPS estimate for the upcoming quarter (Q2 2025) is $0.04, which, while lower than the recent past, suggests a belief in continued profitability.
3. **Analyst Confidence**: The consensus rating for Crexendo is a "Strong Buy" with an average price target of $8.17, indicating analysts' positive outlook. Furthermore, recent price target increases by analysts, such as B. Riley's increase to $7.50, suggest confidence in Crexendo's future performance.
4. **Sector-Wide Trends**: The telecom sector, of which Crexendo is a part, has seen many ups and downs but is now starting to show signs of recovery. Falling bond yields are making telecom stocks more attractive, which could benefit Crexendo.
5. **Financial Health Indicators**: Crexendo's annual revenue increased by 14% to $60.8 million, with a significant improvement in net income from a net loss in the prior year to a net income of $1.7 million. The company's cash flow management has also improved, with cash and cash equivalents increasing to $18.2 million at year-end.
In conclusion, while there are no available data on CXDO's EPS growth rate into 2025, the company's strong growth forecast, recent performance, analyst confidence, and sector-wide trends suggest that Crexendo is well-positioned to sustain its EPS growth into 2025. However, investors should monitor the company's performance closely, especially in the upcoming quarters, to confirm these expectations.