Angi Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
It's been a pretty great week for Angi Inc. (NASDAQ:ANGI) shareholders, with its shares surging 15% to US$6.84 in the week since its latest quarterly results. Statutory earnings per share fell badly short of expectations, coming in at US$0.03, some 73% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$242m. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following the recent earnings report, the consensus from seven analysts covering Angi is for revenues of US$946.3m in 2027. This implies a measurable 2.3% decline in revenue compared to the last 12 months. Earnings are expected to improve, with Angi forecast to report a statutory profit of US$0.50 per share. Before this earnings report, the analysts had been forecasting revenues of US$946.3m and earnings per share (EPS) of US$0.48 in 2027. So the consensus seems to have become somewhat more optimistic on Angi's earnings potential following these results.
See our latest analysis for Angi
The average the analysts price target fell 17% to US$8.00, suggesting thatthe analysts have other concerns, and the improved earnings per share outlook was not enough to allay them. 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. Currently, the most bullish analyst values Angi at US$14.00 per share, while the most bearish prices it at US$5.00. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2027 compared to the historical decline of 13% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 18% per year. So while a broad number of companies are forecast to grow, unfortunately Angi is expected to see its revenue affected worse than other companies in the industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Angi following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Angi's revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Angi's future valuation.
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 forecasts for Angi going out to 2028, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Angi that you need to take into consideration.
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