The investors in The Real Brokerage Inc.'s (NASDAQ:REAX) will be rubbing their hands together with glee today, after the share price leapt 23% to US$4.98 in the week following its first-quarter results. Real Brokerage beat revenue forecasts by a solid 18%, hitting US$201m. Statutory losses also blew out, with the loss per share reaching US$0.09, some 108% bigger than the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Real Brokerage

Taking into account the latest results, the current consensus from Real Brokerage's three analysts is for revenues of US$1.02b in 2024. This would reflect a major 30% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 21% to US$0.15. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$905.9m and losses of US$0.12 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, with the analysts significantly increasing their revenue forecasts while also expecting losses per share to increase. It looks like the top line growth will not be achieved without incremental costs.

The average price target rose 44% to US$6.13, even thoughthe analysts have been updating their forecasts to show higher revenues and higher forecast losses. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Real Brokerage, with the most bullish analyst valuing it at US$6.25 and the most bearish at US$6.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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 would highlight that Real Brokerage's revenue growth is expected to slow, with the forecast 42% annualised growth rate until the end of 2024 being well below the historical 75% 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 11% annually. So it's pretty clear that, while Real Brokerage's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Real Brokerage. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Real Brokerage going out to 2025, and you can see them free on our platform here.

Before you take the next step you should know about the 4 warning signs for Real Brokerage that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.