US$9.19 - That's What Analysts Think TeraWulf Inc. (NASDAQ:WULF) Is Worth After These Results

It's shaping up to be a tough period for TeraWulf Inc. (NASDAQ:WULF), which a week ago released some disappointing third-quarter results that could have a notable impact on how the market views the stock. Unfortunately, TeraWulf delivered a serious earnings miss. Revenues of US$27m were 15% below expectations, and statutory losses ballooned 83% to US$0.06 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for TeraWulf

Following the latest results, TeraWulf's eight analysts are now forecasting revenues of US$278.5m in 2025. This would be a substantial 117% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with TeraWulf forecast to report a statutory profit of US$0.14 per share. In the lead-up to this report, the analysts had been modelling revenues of US$278.4m and earnings per share (EPS) of US$0.15 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 31% to US$9.19, suggesting the revised estimates are not indicative of a weaker long-term future for the business. 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. There are some variant perceptions on TeraWulf, with the most bullish analyst valuing it at US$11.00 and the most bearish at US$6.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. We would highlight that TeraWulf's revenue growth is expected to slow, with the forecast 86% annualised growth rate until the end of 2025 being well below the historical 108% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 12% per year. Even after the forecast slowdown in growth, it seems obvious that TeraWulf is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 TeraWulf going out to 2026, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for TeraWulf that you should be aware of.

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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.