Fathom Holdings Inc. (NASDAQ:FTHM) Analysts Are Cutting Their Estimates: Here's What You Need To Know

Investors in Fathom Holdings Inc. (NASDAQ:FTHM) had a good week, as its shares rose 7.4% to close at US$1.30 following the release of its quarterly results. The results don't look great, especially considering that statutory losses grew 30% toUS$0.13 per share. Revenues of US$121m did beat expectations by 3.5%, but it looks like a bit of a cold comfort. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

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Following the latest results, Fathom Holdings' one analyst are now forecasting revenues of US$411.5m in 2025. This would be a modest 5.5% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 22% to US$0.66. Before this earnings announcement, the analyst had been modelling revenues of US$435.1m and losses of US$0.59 per share in 2025. So it's pretty clear the analyst has mixed opinions on Fathom Holdings after this update; revenues were downgraded and per-share losses expected to increase.

Check out our latest analysis for Fathom Holdings

The average price target lifted 33% to US$2.00, clearly signalling that the weaker revenue and EPS outlook are not expected to weigh on the stock over the longer term.

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. The period to the end of 2025 brings more of the same, according to the analyst, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 12% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% annually. So although Fathom Holdings is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing to take away is that the analyst increased their loss per share estimates for next year. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. There was also a nice increase in the price target, with the analyst 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. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Before you take the next step you should know about the 6 warning signs for Fathom Holdings (2 are significant!) that we have uncovered.

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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.