DocGo Inc. (NASDAQ:DCGO) Analysts Are Cutting Their Estimates: Here's What You Need To Know
DocGo Inc. (NASDAQ:DCGO) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. It was a pretty negative result overall, with revenues of US$73m missing analyst predictions by 4.9%. Worse, the business reported a statutory loss of US$0.17 per share, much larger than the analysts had forecast prior to the result. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following the latest results, DocGo's five analysts are now forecasting revenues of US$309.1m in 2027. This would be a reasonable 4.0% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 85% to US$0.28. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$325.8m and losses of US$0.27 per share in 2027. So it's pretty clear consensus is more negative on DocGo after the new consensus numbers; while the analysts trimmed their revenue estimates, they also administered a pronounced increase to per-share loss expectations.
Check out our latest analysis for DocGo
There was no major change to the consensus price target of US$1.88, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on DocGo, with the most bullish analyst valuing it at US$3.00 and the most bearish at US$1.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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. For example, we noticed that DocGo's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 3.1% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 0.3% a year 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 5.1% per year. Although DocGo's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at DocGo. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at US$1.88, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for DocGo going out to 2028, and you can see them free on our platform here..
You still need to take note of risks, for example - DocGo has 4 warning signs (and 2 which are potentially serious) we think you should know about.
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