The RealReal, Inc. (NASDAQ:REAL) investors will be delighted, with the company turning in some strong numbers with its latest results. Results overall were solid, with revenues arriving 3.6% better than analyst forecasts at US$145m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.16 per share, were 3.6% smaller than the analysts expected. 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.

Taking into account the latest results, the current consensus from RealReal's eight analysts is for revenues of US$586.5m in 2024. This would reflect a credible 3.8% increase on its revenue over the past 12 months. Losses are expected to be contained, narrowing 13% from last year to US$0.74. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$589.0m and losses of US$0.73 per share in 2024.

The analysts trimmed their valuations, with the average price target falling 6.7% to US$3.51, with the ongoing losses seemingly weighing on sentiment, despite no real changes to the earnings forecasts. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on RealReal, with the most bullish analyst valuing it at US$4.00 and the most bearish at US$2.14 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await RealReal shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the RealReal's past performance and to peers in the same industry. It's pretty clear that there is an expectation that RealReal's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 7.6% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.8% annually. Even after the forecast slowdown in growth, it seems obvious that RealReal is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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 RealReal's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for RealReal going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 5 warning signs we've spotted with RealReal (including 1 which is significant) .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.