Yahoo Finance Analyst Estimates: Here's What Brokers Think Of Riot Platforms, Inc. (NASDAQ:RIOT) After Its Yearly Report
It's been a good week for Riot Platforms, Inc. (NASDAQ:RIOT) shareholders, because the company has just released its latest full-year results, and the shares gained 8.3% to US$17.37. Revenues of US$281m came in a modest 2.7% below forecasts. Statutory losses were a relative bright spot though, with a per-share loss of US$0.28 coming in a substantial 71% smaller than what the analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Riot Platforms after the latest results.
View our latest analysis for Riot Platforms
Taking into account the latest results, the consensus forecast from Riot Platforms' eleven analysts is for revenues of US$461.4m in 2024. This reflects a substantial 64% improvement in revenue compared to the last 12 months. Losses are forecast to balloon 193% to US$0.57 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$461.2m and losses of US$0.73 per share in 2024. Although the revenue estimates have not really changed Riot Platforms'future looks a little different to the past, with a considerable decrease in the loss per share forecasts in particular.
There's been no major changes to the consensus price target of US$18.55, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Riot Platforms at US$26.00 per share, while the most bearish prices it at US$11.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 64% growth on an annualised basis. That is in line with its 57% 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 it's pretty clear that Riot Platforms is forecast to grow substantially faster than its industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Riot Platforms going out to 2025, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Riot Platforms (at least 1 which doesn't sit too well with us) , and understanding these should be part of your investment process.
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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.
