IonQ, Inc. (NYSE:IONQ) Annual Results Just Came Out: Here's What Analysts Are Forecasting For This Year

IonQ, Inc. (NYSE:IONQ) came out with its annual results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was a pretty bad result overall; while revenues were in line with expectations at US$22m, statutory losses exploded to US$0.78 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for IonQ

Following the latest results, IonQ's five analysts are now forecasting revenues of US$40.0m in 2024. This would be a major 81% improvement in revenue compared to the last 12 months. Per-share losses are expected to explode, reaching US$1.06 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$39.7m and losses of US$0.73 per share in 2024. So it's pretty clear the analysts have mixed opinions on IonQ even after this update; although they reconfirmed their revenue numbers, it came at the cost of a considerable increase to per-share losses.

The consensus price target held steady at US$15.70, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. 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 IonQ, with the most bullish analyst valuing it at US$21.00 and the most bearish at US$11.50 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.

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. We can infer from the latest estimates that forecasts expect a continuation of IonQ'shistorical trends, as the 81% annualised revenue growth to the end of 2024 is roughly in line with the 97% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.7% annually. So although IonQ 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 note is the forecast of increased losses next year, suggesting all may not be well at IonQ. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$15.70, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on IonQ. Long-term earnings power is much more important than next year's profits. We have forecasts for IonQ going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for IonQ that you need to be mindful 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.