Rumble Inc. (NASDAQ:RUM) Reported Earnings Last Week And Analysts Are Already Upgrading Their Estimates

Rumble Inc. (NASDAQ:RUM) investors will be delighted, with the company turning in some strong numbers with its latest results. The results overall were credible, with revenues of US$22m beating expectations by 14%. Statutory losses were US$0.13 per share, 13% below what the analysts had forecast. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Rumble

Following the latest results, Rumble's dual analysts are now forecasting revenues of US$104.7m in 2024. This would be a substantial 33% improvement in revenue compared to the last 12 months. Losses are forecast to balloon 23% to US$0.56 per share. Before this latest report, the consensus had been expecting revenues of US$96.9m and US$0.64 per share in losses. So it seems there's been a definite increase in optimism about Rumble's future following the latest consensus numbers, with a cut to the loss per share forecasts in particular.

The consensus price target fell 20%, to US$8.00, suggesting that the analysts remain pessimistic on the company, despite the improved earnings and revenue outlook.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 78% growth on an annualised basis. That is in line with its 73% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% annually. So although Rumble is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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. We have analyst estimates for Rumble going out as far as 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Rumble .

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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.