Bit Digital, Inc. (NASDAQ:BTBT) defied analyst predictions to release its yearly results, which were ahead of market expectations. Results overall were solid, with revenues arriving 9.8% better than analyst forecasts at US$45m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.16 per share, were 9.8% 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the current consensus from Bit Digital's three analysts is for revenues of US$109.2m in 2024. This would reflect a substantial 143% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 67% to US$0.043. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$95.0m and losses of US$0.21 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.
It will come as no surprise to learn thatthe analysts have increased their price target for Bit Digital 22% to US$5.17on the back of these upgrades. 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. Currently, the most bullish analyst values Bit Digital at US$6.00 per share, while the most bearish prices it at US$4.50. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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. It's clear from the latest estimates that Bit Digital's rate of growth is expected to accelerate meaningfully, with the forecast 143% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 31% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Bit Digital is expected to grow much faster than its 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, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that in mind, we wouldn't be too quick to come to a conclusion on Bit Digital. 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 Bit Digital going out to 2025, and you can see them free on our platform here..
Don't forget that there may still be risks. For instance, we've identified 4 warning signs for Bit Digital (1 is potentially serious) you should be aware of.
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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.