WonderFi Technologies Inc. (TSE:WNDR) Just Reported And Analysts Have Been Cutting Their Estimates

Shareholders will be ecstatic, with their stake up 23% over the past week following WonderFi Technologies Inc.'s (TSE:WNDR) latest quarterly results. It was a weak result overall, with WonderFi Technologies reporting CA$7.2m in revenues, which was 46% less than what the analysts had 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on WonderFi Technologies after the latest results.

Check out our latest analysis for WonderFi Technologies

After the latest results, the dual analysts covering WonderFi Technologies are now predicting revenues of CA$56.7m in 2025. If met, this would reflect a meaningful 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 145% to CA$0.01. Before this earnings report, the analysts had been forecasting revenues of CA$61.0m and earnings per share (EPS) of CA$0.03 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the CA$0.47 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting WonderFi Technologies' growth to accelerate, with the forecast 9.5% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.3% 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 34% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, WonderFi Technologies is expected to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 analyst estimates for WonderFi Technologies going out as far as 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - WonderFi Technologies has 3 warning signs 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.