GoDaddy Inc. Just Recorded A 9.9% EPS Beat: Here's What Analysts Are Forecasting Next

Last week, you might have seen that GoDaddy Inc. (NYSE:GDDY) released its first-quarter result to the market. The early response was not positive, with shares down 4.8% to US$176 in the past week. The result was positive overall - although revenues of US$1.2b were in line with what the analysts predicted, GoDaddy surprised by delivering a statutory profit of US$1.51 per share, modestly greater than expected. 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 GoDaddy after the latest results.

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Taking into account the latest results, the consensus forecast from GoDaddy's 19 analysts is for revenues of US$4.91b in 2025. This reflects a reasonable 5.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 16% to US$6.14. Before this earnings report, the analysts had been forecasting revenues of US$4.90b and earnings per share (EPS) of US$6.45 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

View our latest analysis for GoDaddy

The consensus price target held steady at US$210, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 GoDaddy at US$250 per share, while the most bearish prices it at US$150. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 7.3% growth on an annualised basis. That is in line with its 7.8% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 9.8% annually. So it's pretty clear that GoDaddy is expected to grow slower than similar companies in the same 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that GoDaddy's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$210, with the latest estimates not enough to have an impact on their price targets.

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 GoDaddy going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for GoDaddy 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.