It's been a mediocre week for SmartRent, Inc. (NYSE:SMRT) shareholders, with the stock dropping 12% to US$0.85 in the week since its latest quarterly results. Revenues of US$41m beat expectations by a respectable 3.1%, although statutory losses per share increased. SmartRent lost US$0.21, which was 425% more than what the analysts had included in their models. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, SmartRent's dual analysts currently expect revenues in 2025 to be US$166.4m, approximately in line with the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 59% to US$0.14. Before this latest report, the consensus had been expecting revenues of US$164.4m and US$0.13 per share in losses. While this year's revenue estimates held steady, there was also a notable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

View our latest analysis for SmartRent

With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 21% to US$1.80, with the analysts signalling that growing losses would be a definite concern.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SmartRent's past performance and to peers in the same industry. We would highlight that SmartRent's revenue growth is expected to slow, with the forecast 0.6% annualised growth rate until the end of 2025 being well below the historical 8.5% 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 7.3% per year. Factoring in the forecast slowdown in growth, it seems obvious that SmartRent is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at SmartRent. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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 SmartRent's future valuation.