Financial automation software company BILL (NYSE:BILL) dropped in pre-market trading as the company’s lowered forecast dismayed investors. In FY24, BILL has projected revenues between $1.205 billion and $1.245 billion while adjusted earnings are expected to be in the range of $1.64 to $1.97 per share. This was weaker than the company’s prior forecast of revenues in the range of $1.29 billion to $1.31 billion and adjusted earnings per share between $1.82 and $1.97.
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Looking forward, in Q2, management now expects revenues in the range of $293 million to $303 million while adjusted earnings are likely to be between $0.35 and $0.44 per share.
John Rettig, BILL President and CFO commented, “In a challenging macro environment, we delivered strong financial results in Q1. We are carefully navigating the current environment while continuing to invest behind the long-term opportunity to serve millions of SMBs [small-to-medium businesses].”
The company reported adjusted earnings in the Fiscal first quarter to $0.54 per share while analysts were expecting earnings for the Fiscal first quarter of $0.5 per share. The company’s revenues increased by 33% year-over-year to $305 million in Q1 but fell short of consensus estimates of $311.3 million.
Is BILL Holdings a Buy?
Analysts are cautiously optimistic about BILL stock with a Moderate Buy consensus rating based on 12 Buys and nine Holds. The average BILL price target of $124.53 implies an upside potential of 39.2% at current levels.
