New Forecasts: Here's What Analysts Think The Future Holds For Ideanomics, Inc. (NASDAQ:IDEX)

Ideanomics, Inc. (NASDAQ:IDEX) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. The market may be pricing in some blue sky too, with the share price gaining 12% to US$2.75 in the last 7 days. Could this upgrade be enough to drive the stock even higher?

Following the upgrade, the current consensus from Ideanomics' single analyst is for revenues of US$129m in 2021 which - if met - would reflect a sizeable 119% increase on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 84% to US$0.05. Yet before this consensus update, the analyst had been forecasting revenues of US$105m and losses of US$0.11 per share in 2021. So there's been quite a change-up of views after the recent consensus updates, with the analyst making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

Check out our latest analysis for Ideanomics

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. One thing stands out from these estimates, which is that Ideanomics is forecast to grow faster in the future than it has in the past, with revenues expected to display 184% annualised growth until the end of 2021. If achieved, this would be a much better result than the 2.6% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 13% per year. Not only are Ideanomics' revenues expected to improve, it seems that the analyst is also expecting it to grow faster than the wider industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Ideanomics is moving incrementally towards profitability. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Ideanomics' future.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential warning signs with Ideanomics, including major dilution from new stock issuance in the past year. For more information, you can click through to our platform to learn more about this and the 2 other warning signs we've identified .

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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