Earnings Release: Here's Why Analysts Cut Their RumbleOn, Inc. (NASDAQ:RMBL) Price Target To US$6.50

RumbleOn, Inc. (NASDAQ:RMBL) just released its latest third-quarter report and things are not looking great. Revenues missed expectations somewhat, coming in at US$295m, but statutory earnings fell catastrophically short, with a loss of US$0.32 some 94% larger than what the analysts had predicted. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on RumbleOn after the latest results.

See our latest analysis for RumbleOn

After the latest results, the four analysts covering RumbleOn are now predicting revenues of US$1.30b in 2025. If met, this would reflect an okay 3.7% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 98% to US$0.13. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$1.33b and losses of US$0.02 per share in 2025. While next year's revenue estimates dropped there was also a considerable increase to loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The consensus price target fell 5.5% to US$6.50, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic RumbleOn analyst has a price target of US$8.00 per share, while the most pessimistic values it at US$5.50. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that RumbleOn's revenue growth is expected to slow, with the forecast 2.9% annualised growth rate until the end of 2025 being well below the historical 20% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.7% per year. Factoring in the forecast slowdown in growth, it seems obvious that RumbleOn is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at RumbleOn. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of RumbleOn'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. At Simply Wall St, we have a full range of analyst estimates for RumbleOn going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - RumbleOn has 2 warning signs (and 1 which doesn't sit too well with us) we think 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.