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Investors in Wag! Group Co. (NASDAQ:PET) had a good week, as its shares rose 5.3% to close at US$2.39 following the release of its first-quarter results. The statutory results were mixed overall, with revenues of US$23m in line with analyst forecasts, but losses of US$0.11 per share, some 7.3% larger than the analysts were predicting. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Wag! Group after the latest results.
See our latest analysis for Wag! Group
Taking into account the latest results, the most recent consensus for Wag! Group from four analysts is for revenues of US$108.9m in 2024. If met, it would imply a sizeable 26% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 30% to US$0.24. Before this latest report, the consensus had been expecting revenues of US$108.8m and US$0.13 per share in losses. While this year's revenue estimates held steady, there was also a regrettable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
The consensus price target held steady at US$5.88, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. 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. Currently, the most bullish analyst values Wag! Group at US$8.00 per share, while the most bearish prices it at US$4.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Wag! Group's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Wag! Group'shistorical trends, as the 36% annualised revenue growth to the end of 2024 is roughly in line with the 31% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 11% annually. So it's pretty clear that Wag! Group is forecast to grow substantially faster than its industry.