DoorDash, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

As you might know, DoorDash, Inc. (NASDAQ:DASH) just kicked off its latest quarterly results with some very strong numbers. The company beat forecasts, with revenue of US$3.3b, some 3.8% above estimates, and statutory earnings per share (EPS) coming in at US$0.65, 50% ahead of expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus from DoorDash's 38 analysts is for revenues of US$13.2b in 2025. This would reflect a meaningful 11% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 35% to US$2.49. In the lead-up to this report, the analysts had been modelling revenues of US$12.9b and earnings per share (EPS) of US$2.17 in 2025. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a decent improvement in earnings per share in particular.

Check out our latest analysis for DoorDash

With these upgrades, we're not surprised to see that the analysts have lifted their price target 17% to US$285per share. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values DoorDash at US$360 per share, while the most bearish prices it at US$190. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the DoorDash's past performance and to peers in the same industry. It's pretty clear that there is an expectation that DoorDash's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 23% growth on an annualised basis. This is compared to a historical growth rate of 29% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 9.7% per year. So it's pretty clear that, while DoorDash's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around DoorDash's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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. At Simply Wall St, we have a full range of analyst estimates for DoorDash going out to 2027, and you can see them free on our platform here..

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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.