Forecast: Analysts Think QuinStreet, Inc.'s (NASDAQ:QNST) Business Prospects Have Improved Drastically

QuinStreet, Inc. (NASDAQ:QNST) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. The stock price has risen 6.6% to US$22.85 over the past week, suggesting investors are becoming more optimistic. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

Following the upgrade, the most recent consensus for QuinStreet from its six analysts is for revenues of US$1.0b in 2025 which, if met, would be a major 30% increase on its sales over the past 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting US$0.13 in per-share earnings. Previously, the analysts had been modelling revenues of US$831m and earnings per share (EPS) of US$0.08 in 2025. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

See our latest analysis for QuinStreet

It will come as no surprise to learn that the analysts have increased their price target for QuinStreet 27% to US$29.00 on the back of these upgrades.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the QuinStreet's past performance and to peers in the same industry. The analysts are definitely expecting QuinStreet's growth to accelerate, with the forecast 43% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that QuinStreet is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at QuinStreet.

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 QuinStreet going out to 2027, and you can see them free on our platform here..

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.