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

Shareholders in QuinStreet, Inc. (NASDAQ:QNST) had a terrible week, as shares crashed 22% to US$14.86 in the week since its latest third-quarter results. It looks like a credible result overall - although revenues of US$270m were what the analysts expected, QuinStreet surprised by delivering a (statutory) profit of US$0.08 per share, an impressive 43% above what was forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Our free stock report includes 1 warning sign investors should be aware of before investing in QuinStreet. Read for free now.

Taking into account the latest results, the most recent consensus for QuinStreet from six analysts is for revenues of US$1.17b in 2026. If met, it would imply a meaningful 14% increase on its revenue over the past 12 months. Earnings are expected to improve, with QuinStreet forecast to report a statutory profit of US$0.53 per share. In the lead-up to this report, the analysts had been modelling revenues of US$1.18b and earnings per share (EPS) of US$0.55 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

View our latest analysis for QuinStreet

It might be a surprise to learn that the consensus price target fell 15% to US$26.40, with the analysts clearly linking lower forecast earnings to the performance of the stock price. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on QuinStreet, with the most bullish analyst valuing it at US$31.00 and the most bearish at US$19.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 10% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 10% per year. It's clear that while QuinStreet's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of QuinStreet's future valuation.

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

You still need to take note of risks, for example - QuinStreet has 1 warning sign we think you should be aware of.

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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.