US$2.85 - That's What Analysts Think Blend Labs, Inc. (NYSE:BLND) Is Worth After These Results
Blend Labs, Inc. (NYSE:BLND) shareholders are probably feeling a little disappointed, since its shares fell 9.4% to US$2.81 in the week after its latest annual results. Revenues came in at US$157m, in line with forecasts and the company reported a statutory loss of US$0.76 per share, roughly in line with expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for Blend Labs
Taking into account the latest results, the most recent consensus for Blend Labs from six analysts is for revenues of US$166.4m in 2024. If met, it would imply a modest 6.1% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 57% to US$0.32. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$178.4m and losses of US$0.36 per share in 2024. Although the revenue estimates have fallen somewhat, Blend Labs'future looks a little different to the past, with a favorable reduction in the loss per share forecasts in particular.
The consensus price target rose 19% to US$2.85, with the analysts increasingly optimistic about shrinking losses, despite the expected decline in revenue. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Blend Labs at US$3.50 per share, while the most bearish prices it at US$2.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Blend Labs shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Blend Labs' revenue growth is expected to slow, with the forecast 6.1% annualised growth rate until the end of 2024 being well below the historical 10% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Blend Labs.
The Bottom Line
The most obvious conclusion is that the analysts 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. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
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. At Simply Wall St, we have a full range of analyst estimates for Blend Labs going out to 2026, and you can see them free on our platform here..
Before you take the next step you should know about the 3 warning signs for Blend Labs that we have uncovered.
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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.
