Wedbush Has Pessimistic Outlook of Innodata FY2025 Earnings

Key Points

• Wedbush has revised its FY2025 earnings estimate for Innodata Inc. (NASDAQ:INOD) down to $0.82 per share from a previous estimate of $0.88, while maintaining an "Outperform" rating with a price target of $58.00.
• Innodata reported $0.20 earnings per share for the last quarter, surpassing estimates by $0.09, alongside a significant 79.7% year-over-year revenue increase to $58.39 million.
• Research by BWS Financial gives Innodata a "buy" rating with a target price of $74.00, while the average price target among analysts is $55.00.

Innodata Inc. (NASDAQ:INOD - Free Report) - Equities research analysts at Wedbush reduced their FY2025 earnings per share estimates for Innodata in a report issued on Friday, August 1st. Wedbush analyst D. Ives now forecasts that the technology company will earn $0.82 per share for the year, down from their prior estimate of $0.88. Wedbush has a "Outperform" rating and a $58.00 price target on the stock. The consensus estimate for Innodata's current full-year earnings is $0.81 per share. Wedbush also issued estimates for Innodata's Q1 2026 earnings at $0.27 EPS, Q2 2026 earnings at $0.28 EPS and Q3 2026 earnings at $0.29 EPS.

Innodata (NASDAQ:INOD - Get Free Report) last posted its earnings results on Thursday, July 31st. The technology company reported $0.20 earnings per share for the quarter, topping the consensus estimate of $0.11 by $0.09. The firm had revenue of $58.39 million for the quarter, compared to analyst estimates of $56.35 million. Innodata had a return on equity of 54.27% and a net margin of 18.71%. The firm's quarterly revenue was up 79.7% on a year-over-year basis.

Separately, BWS Financial reissued a "buy" rating and set a $74.00 target price on shares of Innodata in a report on Monday, June 16th. One investment analyst has rated the stock with a hold rating and five have issued a buy rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $55.00.

Innodata Stock Performance

Shares of INOD stock traded down $0.50 during trading on Monday, reaching $43.09. 877,433 shares of the company's stock were exchanged, compared to its average volume of 2,196,965. The stock has a market capitalization of $1.37 billion, a PE ratio of 34.64 and a beta of 2.75. The company has a quick ratio of 2.36, a current ratio of 2.87 and a debt-to-equity ratio of 0.09. The firm's fifty day moving average price is $47.21 and its 200-day moving average price is $43.14. Innodata has a twelve month low of $13.02 and a twelve month high of $71.00.

Hedge Funds Weigh In On Innodata

A number of institutional investors and hedge funds have recently modified their holdings of INOD. Vanguard Group Inc. boosted its holdings in shares of Innodata by 7.4% in the 1st quarter. Vanguard Group Inc. now owns 1,760,354 shares of the technology company's stock worth $63,197,000 after buying an additional 120,630 shares during the last quarter. D. E. Shaw & Co. Inc. lifted its stake in shares of Innodata by 1,718.4% in the 4th quarter. D. E. Shaw & Co. Inc. now owns 944,611 shares of the technology company's stock valued at $37,331,000 after acquiring an additional 892,663 shares during the last quarter. Yong Rong HK Asset Management Ltd bought a new stake in Innodata in the first quarter valued at approximately $28,548,000. Wellington Management Group LLP lifted its stake in Innodata by 177.8% in the first quarter. Wellington Management Group LLP now owns 793,041 shares of the technology company's stock worth $28,470,000 after acquiring an additional 507,540 shares during the period. Finally, Driehaus Capital Management LLC raised its position in shares of Innodata by 34.3% in the 1st quarter. Driehaus Capital Management LLC now owns 567,866 shares of the technology company's stock worth $20,386,000 after acquiring an additional 144,972 shares in the last quarter. 30.75% of the stock is currently owned by institutional investors.

Innodata Company Profile

Innodata Inc operates as a global data engineering company in the United States, the United Kingdom, the Netherlands, Canada, and internationally. The company operates through three segments: Digital Data Solutions (DDS), Synodex, and Agility. The DDS segment engages in the provision of artificial intelligence (AI) data preparation services; collecting or creating training data; annotating training data; and training AI algorithms for its customers, as well as AI model deployment and integration services.