Yahoo Finance Here's What Analysts Are Forecasting For Nerdy, Inc. (NYSE:NRDY) After Its First-Quarter Results
Nerdy, Inc. (NYSE:NRDY) just released its first-quarter report and things are looking bullish. Results overall were solid, with revenues arriving 2.8% better than analyst forecasts at US$54m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.07 per share, were 2.8% smaller than the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for Nerdy
Taking into account the latest results, the most recent consensus for Nerdy from eight analysts is for revenues of US$237.5m in 2024. If met, it would imply a solid 20% increase on its revenue over the past 12 months. Per-share losses are expected to explode, reaching US$0.32 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$237.6m and losses of US$0.33 per share in 2024. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for this year.
The average price target held steady at US$4.64, seeming to indicate that business is performing in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Nerdy at US$6.00 per share, while the most bearish prices it at US$3.75. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Nerdy's rate of growth is expected to accelerate meaningfully, with the forecast 28% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 16% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Nerdy to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$4.64, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Nerdy analysts - going out to 2026, and you can see them free on our platform here.
Before you take the next step you should know about the 4 warning signs for Nerdy that we have uncovered.
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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.
