Airbnb, Inc. (NASDAQ: ABNB) Shareholders are probably feeling a bit disappointed, as its shares fell 6.6% to US $ 141 the week after its latest first quarter results. Airbnb topped revenue forecast by 12%, reaching $ 887 million. Statutory losses also exploded, with the loss per share reaching US $ 1.95, 55% more than analysts expected. Profits are an important time for investors because they can follow a company’s performance, look at what analysts are forecasting for next year, and see if there has been a change in sentiment towards the company. Readers will be happy to know that we’ve aggregated the latest statutory forecast to see if analysts have changed their minds on Airbnb after the latest results.
Check out our latest analysis for Airbnb
Based on the latest results, the current consensus of Airbnb’s 32 analysts is for 2021 revenue of US $ 4.8 billion, which would reflect a substantial 42% increase in sales over the past 12. month. The loss per share is expected to decline significantly in the near future, narrowing 90% to US $ 1.58. Prior to this latest report, the consensus expected revenues of US $ 4.79 billion and losses of US $ 1.59 per share.
As a result, there have been no major changes from the consensus price target of US $ 176, implying that the company is trading roughly as expected despite ongoing losses. This is not the only conclusion we can draw from this data, however, as some investors also like to factor in the spread in estimates when evaluating analysts’ price targets. The most bullish Airbnb analyst has a price target of $ 245 per share, while the most pessimistic puts it at $ 74.00. This is a fairly wide range of estimates, suggesting that analysts are predicting a wide range of possible outcomes for the business.
One way to get more context on these forecasts is to look at how they stack up against both past performance and the performance of other companies in the same industry. One thing that emerges from these estimates is that Airbnb is expected to grow faster in the future than in the past, with revenues expected to show annualized growth of 60% through the end of 2021. If this is achieved , that would be a much better result than the 30% annual drop recorded last year. In contrast, our data suggests that other companies (with analyst coverage) in the industry are expected to see their revenues grow by 22% per year. Not only is Airbnb’s revenue expected to improve, but it looks like analysts are also expecting faster growth than the industry at large.
The bottom line
The most important thing to remember is that analysts have reconfirmed their estimates of loss per share for next year. Fortunately, there have been no major changes to the revenue forecast, with the business still expected to grow faster than the industry as a whole. There has been no real change to the consensus price target, suggesting that the intrinsic value of the company has not undergone any major changes with the latest estimates.
With that in mind, we wouldn’t be too quick to draw a conclusion on Airbnb. Long-term earnings power is much more important than next year’s earnings. We have forecasts for Airbnb through 2025, and you can see them for free on our platform here.
However, you should always think about the risks. Concrete example, we have spotted 1 warning sign for Airbnb you must be aware.
This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.