It's been a pretty great week for SmartRent, Inc. (NYSE:SMRT) shareholders, with its shares surging 19% to US$3.01 in the week since its latest quarterly results. The results were mixed overall, with revenues slightly ahead of analyst estimates at US$48m. Statutory losses by contrast were 6.1% larger than predictions at US$0.13 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for SmartRent

After the latest results, the eight analysts covering SmartRent are now predicting revenues of US$269.6m in 2023. If met, this would reflect a huge 66% improvement in sales compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 53% to US$0.24. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$284.4m and losses of US$0.23 per share in 2023. So it's pretty clear consensus is more negative on SmartRent after the new consensus numbers; while the analysts trimmed their revenue estimates, they also administered a moderate increase in per-share loss expectations.

The average price target was broadly unchanged at US$5.06, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic SmartRent analyst has a price target of US$6.00 per share, while the most pessimistic values it at US$2.90. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 50% growth on an annualised basis. That is in line with its 53% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.5% per year. So although SmartRent is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at SmartRent. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at US$5.06, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on SmartRent. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for SmartRent going out to 2024, and you can see them free on our platform here..

Plus, you should also learn about the 3 warning signs we've spotted with SmartRent .

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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.