Investors in WisdomTree Investments, Inc. (NASDAQ:WETF) had a good week, as its shares rose 3.0% to close at US$5.53 following the release of its yearly results. Revenues were in line with expectations, at US$254m, while statutory losses ballooned to US$0.25 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for WisdomTree Investments
Following the latest results, WisdomTree Investments' seven analysts are now forecasting revenues of US$289.5m in 2021. This would be a notable 14% improvement in sales compared to the last 12 months. Earnings are expected to improve, with WisdomTree Investments forecast to report a statutory profit of US$0.29 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$279.5m and earnings per share (EPS) of US$0.21 in 2021. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a very substantial lift in earnings per share in particular.
With these upgrades, we're not surprised to see that the analysts have lifted their price target 7.4% to US$5.89per share. 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. Currently, the most bullish analyst values WisdomTree Investments at US$7.40 per share, while the most bearish prices it at US$4.25. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that WisdomTree Investments' rate of growth is expected to accelerate meaningfully, with the forecast 14% revenue growth noticeably faster than its historical growth of 0.6%p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.6% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that WisdomTree Investments is expected to grow much faster than its industry.