Jet.AI Inc. (NASDAQ:JTAI) Just Reported Earnings, And Analysts Cut Their Target Price

One of the biggest stories of last week was how Jet.AI Inc. (NASDAQ:JTAI) shares plunged 45% in the week since its latest third-quarter results, closing yesterday at US$5.35. Jet.AI beat revenue forecasts by a solid 16%, hitting US$3.9m. Statutory losses also blew out, with the loss per share reaching US$43.82, some 290% bigger than the analyst expected. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

View our latest analysis for Jet.AI

Taking into account the latest results, the consensus forecast from Jet.AI's single analyst is for revenues of US$16.0m in 2025. This reflects a modest 6.5% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 61% to US$6.04. Yet prior to the latest earnings, the analyst had been forecasting revenues of US$17.0m and losses of US$67.50 per share in 2025. Although the revenue estimate has fallen somewhat, Jet.AI'sfuture looks a little different to the past, with a very promising decrease in the loss per share forecasts in particular.

The consensus price target fell 91% to US$20.00, with the dip in revenue estimates clearly souring sentiment, despite the forecast reduction in losses.

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. It's pretty clear that there is an expectation that Jet.AI's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.2% growth on an annualised basis. This is compared to a historical growth rate of 56% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.4% annually. Factoring in the forecast slowdown in growth, it seems obvious that Jet.AI is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that the analyst made no changes to their forecasts for a loss next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. With that said, earnings are more important to the long-term value of the business. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 analyst estimates for Jet.AI going out as far as 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 5 warning signs for Jet.AI (4 make us uncomfortable!) 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.