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It's shaping up to be a tough period for Rigetti Computing, Inc. (NASDAQ:RGTI), which a week ago released some disappointing third-quarter results that could have a notable impact on how the market views the stock. It was a pretty negative result overall, with revenues of US$3.1m missing analyst predictions by 8.7%. Worse, the business reported a statutory loss of US$0.17 per share, much larger than the analysts had forecast prior to the result. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Rigetti Computing
After the latest results, the three analysts covering Rigetti Computing are now predicting revenues of US$16.8m in 2024. If met, this would reflect a decent 15% improvement in revenue compared to the last 12 months. Losses are expected to be contained, narrowing 17% from last year to US$0.54. Before this latest report, the consensus had been expecting revenues of US$16.7m and US$0.66 per share in losses. Although the revenue estimates have not really changed Rigetti Computing'sfuture looks a little different to the past, with a cut to the loss per share forecasts in particular.
The average price target rose 250% to US$3.50, with the analysts signalling that the forecast reduction in losses would be a positive for the stock's valuation. 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. The most optimistic Rigetti Computing analyst has a price target of US$4.00 per share, while the most pessimistic values it at US$3.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Rigetti Computing's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2024 being well below the historical 36% 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 16% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Rigetti Computing.