Analysts Have Lowered Expectations For RumbleOn, Inc. (NASDAQ:RMBL) After Its Latest Results

RumbleOn, Inc. (NASDAQ:RMBL) just released its latest first-quarter report and things are not looking great. It definitely looks like a negative result overall with revenues falling 13% short of analyst estimates at US$245m. Statutory losses were US$0.26 per share, 27% bigger than what the analysts 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Our free stock report includes 2 warning signs investors should be aware of before investing in RumbleOn. Read for free now.

After the latest results, the consensus from RumbleOn's dual analysts is for revenues of US$1.03b in 2025, which would reflect an uneasy 10% decline in revenue compared to the last year of performance. The loss per share is expected to greatly reduce in the near future, narrowing 66% to US$0.71. Before this latest report, the consensus had been expecting revenues of US$1.17b and US$0.57 per share in losses. There's been a definite change in sentiment in this update, with the analysts administering a notable cut to next year's revenue estimates, while at the same time increasing their loss per share forecasts.

See our latest analysis for RumbleOn

The average price target fell 25% to US$3.00, implicitly signalling that lower earnings per share are a leading indicator for RumbleOn's valuation.

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. We would highlight that revenue is expected to reverse, with a forecast 14% annualised decline to the end of 2025. That is a notable change from historical growth of 19% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.0% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - RumbleOn is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for RumbleOn 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.