Earnings Beat: Bit Digital, Inc. (NASDAQ:BTBT) Just Beat Analyst Forecasts, And Analysts Have Been Lifting Their Forecasts

As you might know, Bit Digital, Inc. (NASDAQ:BTBT) just kicked off its latest yearly results with some very strong numbers. Revenues and losses per share were both better than expected, with revenues of US$45m leading estimates by 9.8%. Statutory losses were smaller than the analystsexpected, coming in at US$0.16 per share. 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.

View our latest analysis for Bit Digital

Taking into account the latest results, the most recent consensus for Bit Digital from three analysts is for revenues of US$109.2m in 2024. If met, it would imply a major 143% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 67% to US$0.043. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$95.0m and losses of US$0.21 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

It will come as no surprise to learn thatthe analysts have increased their price target for Bit Digital 22% to US$5.17on the back of these upgrades. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Bit Digital at US$6.00 per share, while the most bearish prices it at US$4.50. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Bit Digital's growth to accelerate, with the forecast 143% annualised growth to the end of 2024 ranking favourably alongside historical growth of 31% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Bit Digital to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 forecasts for Bit Digital going out to 2025, and you can see them free on our platform here.

Plus, you should also learn about the 4 warning signs we've spotted with Bit Digital (including 1 which is a bit concerning) .

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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.