Dada Nexus Limited (NASDAQ:DADA) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates

It's been a sad week for Dada Nexus Limited (NASDAQ:DADA), who've watched their investment drop 15% to US$1.44 in the week since the company reported its quarterly result. The results were positive, with revenue coming in at CN¥2.4b, beating analyst expectations by 2.8%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Dada Nexus

Following the latest results, Dada Nexus' ten analysts are now forecasting revenues of CN¥11.1b in 2025. This would be a meaningful 11% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 61% to CN¥3.13. Before this latest report, the consensus had been expecting revenues of CN¥11.2b and CN¥3.07 per share in losses. So it's pretty clear consensus is mixed on Dada Nexus after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a pronounced increase to per-share loss expectations.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Dada Nexus' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Dada Nexus' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.5% growth on an annualised basis. This is compared to a historical growth rate of 23% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.7% annually. So it's pretty clear that, while Dada Nexus' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Dada Nexus. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There is currently no consensus price target from the analysts we track, but we note that the market disliked the latest results, with the share price falling -15% in the past week.

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 Dada Nexus going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Dada Nexus that you need to take into consideration.

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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.