Analysts Have Made A Financial Statement On Lemonade, Inc.'s (NYSE:LMND) First-Quarter Report

As you might know, Lemonade, Inc. (NYSE:LMND) just kicked off its latest first-quarter results with some very strong numbers. Lemonade beat expectations with revenues of US$151m arriving 4.3% ahead of forecasts. The company also reported a statutory loss of US$0.86, 7.5% smaller than was 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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After the latest results, the eight analysts covering Lemonade are now predicting revenues of US$669.3m in 2025. If met, this would reflect a meaningful 20% improvement in revenue compared to the last 12 months. Losses are forecast to narrow 5.7% to US$2.80 per share. Before this earnings announcement, the analysts had been modelling revenues of US$658.5m and losses of US$2.82 per share in 2025.

View our latest analysis for Lemonade

The consensus price target was unchanged at US$30.43, suggesting that the business - losses and all - is executing in line with estimates. 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. There are some variant perceptions on Lemonade, with the most bullish analyst valuing it at US$60.00 and the most bearish at US$15.00 per share. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on 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. We would highlight that Lemonade's revenue growth is expected to slow, with the forecast 27% annualised growth rate until the end of 2025 being well below the historical 40% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.2% annually. Even after the forecast slowdown in growth, it seems obvious that Lemonade is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$30.43, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Lemonade going out to 2027, and you can see them free on our platform here.

Even so, be aware that Lemonade is showing 3 warning signs in our investment analysis , you should know about...

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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.