Some Analysts Just Cut Their Rigetti Computing, Inc. (NASDAQ:RGTI) Estimates
The analysts covering Rigetti Computing, Inc. (NASDAQ:RGTI) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative. Investors however, have been notably more optimistic about Rigetti Computing recently, with the stock price up a worthy 26% to US$0.58 in the past week. Whether the downgrade will have a negative impact on demand for shares is yet to be seen.
After the downgrade, the consensus from Rigetti Computing's four analysts is for revenues of US$13m in 2023, which would reflect a small 4.9% decline in sales compared to the last year of performance. Before the latest update, the analysts were foreseeing US$15m of revenue in 2023. The consensus view seems to have become more pessimistic on Rigetti Computing, noting the substantial drop in revenue estimates in this update.
Check out our latest analysis for Rigetti Computing
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that sales are expected to reverse, with a forecast 6.5% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 52% over the last year. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 12% annually for the foreseeable future. It's pretty clear that Rigetti Computing's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that analysts cut their revenue estimates for this year. They're also anticipating slower revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Rigetti Computing after today.
There might be good reason for analyst bearishness towards Rigetti Computing, like dilutive stock issuance over the past year. Learn more, and discover the 4 other concerns we've identified, for free on our platform here.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
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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.
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