Rush Street Interactive, Inc. (NYSE:RSI) Just Reported Annual Earnings And Analysts Are Lifting Their Estimates

As you might know, Rush Street Interactive, Inc. (NYSE:RSI) just kicked off its latest annual results with some very strong numbers. Results overall were solid, with revenues arriving 2.2% better than analyst forecasts at US$691m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.27 per share, were 2.2% smaller than the analysts 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Rush Street Interactive

Taking into account the latest results, the consensus forecast from Rush Street Interactive's nine analysts is for revenues of US$796.7m in 2024. This reflects a decent 15% improvement in revenue compared to the last 12 months. Losses are supposed to decline, shrinking 17% from last year to US$0.20. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$755.7m and losses of US$0.19 per share in 2024. So it's pretty clear consensus is mixed on Rush Street Interactive after the new consensus numbers; while the analysts lifted revenue numbers, they also administered a modest increase to per-share loss expectations.

The average price target rose 21% to US$8.13, even thoughthe analysts have been updating their forecasts to show higher revenues and higher forecast losses. 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. Currently, the most bullish analyst values Rush Street Interactive at US$11.00 per share, while the most bearish prices it at US$6.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Rush Street Interactive's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 15% growth on an annualised basis. This is compared to a historical growth rate of 33% 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 9.6% annually. So it's pretty clear that, while Rush Street Interactive's 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 Rush Street Interactive. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Rush Street Interactive analysts - going out to 2026, and you can see them free on our platform here.

You can also see our analysis of Rush Street Interactive's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.