A week ago, Robinhood Markets, Inc. (NASDAQ:HOOD) came out with a strong set of first-quarter numbers that could potentially lead to a re-rate of the stock. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 11% higher than the analysts had forecast, at US$618m, while EPS were US$0.18 beating analyst models by 225%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Following the latest results, Robinhood Markets' 13 analysts are now forecasting revenues of US$2.40b in 2024. This would be a decent 18% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 255% to US$0.51. In the lead-up to this report, the analysts had been modelling revenues of US$2.24b and earnings per share (EPS) of US$0.26 in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a sizeable expansion in earnings per share in particular.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 5.4% to US$19.93per share. 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 Robinhood Markets analyst has a price target of US$30.00 per share, while the most pessimistic values it at US$12.50. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Robinhood Markets' growth to accelerate, with the forecast 24% annualised growth to the end of 2024 ranking favourably alongside historical growth of 6.1% per annum 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 5.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Robinhood Markets is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Robinhood Markets' earnings potential 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Robinhood Markets going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Robinhood Markets that 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.