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Shareholders in Jet.AI Inc. (NASDAQ:JTAI) had a terrible week, as shares crashed 45% to US$5.35 in the week since its latest third-quarter results. Jet.AI beat revenue forecasts by a solid 16%, hitting US$3.9m. Statutory losses also blew out, with the loss per share reaching US$43.82, some 290% bigger than the analyst expected. The analyst 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 estimate to see what could be in store for next year.
See our latest analysis for Jet.AI
Taking into account the latest results, the current consensus from Jet.AI's single analyst is for revenues of US$16.0m in 2025. This would reflect an okay 6.5% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 61% to US$6.04. Yet prior to the latest earnings, the analyst had been forecasting revenues of US$17.0m and losses of US$67.50 per share in 2025. While the revenue estimates fell, sentiment seems to have improved, with the analyst making a very promising decrease in losses per share in particular.
The consensus price target fell 91% to US$20.00, with the dip in revenue estimates clearly souring sentiment, despite the forecast reduction in losses.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Jet.AI's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Jet.AI's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.2% growth on an annualised basis. This is compared to a historical growth rate of 56% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.4% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Jet.AI.
The Bottom Line
The most obvious conclusion is that the analyst made no changes to their forecasts for a loss next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Still, earnings per share are more important to value creation for shareholders. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Jet.AI's future valuation.