TeraWulf Inc. (NASDAQ:WULF) Just Reported And Analysts Have Been Cutting Their Estimates

It's shaping up to be a tough period for TeraWulf Inc. (NASDAQ:WULF), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. Unfortunately, TeraWulf delivered a serious earnings miss. Revenues of US$34m were 17% below expectations, and statutory losses ballooned 129% to US$0.16 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on TeraWulf after the latest results.

We've discovered 3 warning signs about TeraWulf. View them for free.

Following the latest results, TeraWulf's nine analysts are now forecasting revenues of US$202.2m in 2025. This would be a major 53% improvement in revenue compared to the last 12 months. Per-share losses are supposed to see a sharp uptick, reaching US$0.38. Before this earnings announcement, the analysts had been modelling revenues of US$227.9m and losses of US$0.18 per share in 2025. 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.

View our latest analysis for TeraWulf

The consensus price target fell 9.7% to US$6.55, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on TeraWulf, with the most bullish analyst valuing it at US$10.00 and the most bearish at US$4.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 77% growth on an annualised basis. That is in line with its 84% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 12% per year. So although TeraWulf is expected to maintain its revenue growth rate, it's definitely expected to grow faster than 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster 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. We have forecasts for TeraWulf going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for TeraWulf (2 shouldn't be ignored!) 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.