Yahoo Finance Analyst Estimates: Here's What Brokers Think Of Marqeta, Inc. (NASDAQ:MQ) After Its First-Quarter Report
Investors in Marqeta, Inc. (NASDAQ:MQ) had a good week, as its shares rose 5.0% to close at US$5.84 following the release of its quarterly results. The results look positive overall; while revenues of US$118m were in line with analyst predictions, statutory losses were 9.2% smaller than expected, with Marqeta losing US$0.07 per share. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for Marqeta
After the latest results, the consensus from Marqeta's 16 analysts is for revenues of US$513.7m in 2024, which would reflect an uneasy 11% decline in revenue compared to the last year of performance. Losses are predicted to fall substantially, shrinking 83% to US$0.063. Before this earnings announcement, the analysts had been modelling revenues of US$524.3m and losses of US$0.33 per share in 2024. Although the revenue estimates have fallen somewhat, Marqeta'sfuture looks a little different to the past, with a very favorable reduction to the loss per share forecasts in particular.
There was no major change to the US$7.64average price target, suggesting that the adjustments to revenue and earnings are not expected to have a long-term impact on the business. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Marqeta, with the most bullish analyst valuing it at US$9.00 and the most bearish at US$6.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Marqeta shareholders.
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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 14% by the end of 2024. This indicates a significant reduction from annual growth of 20% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.6% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Marqeta is expected to lag 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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Yet - earnings are more important to the intrinsic value of the business. The consensus price target held steady at US$7.64, 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 forecasts for Marqeta going out to 2026, and you can see them free on our platform here.
You still need to take note of risks, for example - Marqeta has 1 warning sign we think 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.
