Investors in Rush Street Interactive, Inc. (NYSE:RSI) had a good week, as its shares rose 6.1% to close at US$10.77 following the release of its quarterly results. Revenues beat expectations, coming in 8.7% ahead of forecasts, and the company broke even on a statutory earnings per share (EPS) level. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Taking into account the latest results, the most recent consensus for Rush Street Interactive from nine analysts is for revenues of US$867.9m in 2024. If met, it would imply a meaningful 8.3% increase on its revenue over the past 12 months. Per-share losses are predicted to creep up to US$0.09. Before this latest report, the consensus had been expecting revenues of US$845.7m and US$0.095 per share in losses. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrades to both revenue and loss per share forecasts for this year.

It will come as no surprise to learn thatthe analysts have increased their price target for Rush Street Interactive 24% to US$12.78on the back of these upgrades. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Rush Street Interactive analyst has a price target of US$15.00 per share, while the most pessimistic values it at US$8.25. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. We can infer from the latest estimates that forecasts expect a continuation of Rush Street Interactive'shistorical trends, as the 17% annualised revenue growth to the end of 2024 is roughly in line with the 20% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 9.6% annually. So although Rush Street Interactive is expected to maintain its revenue growth rate, it's definitely 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. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Rush Street Interactive. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Rush Street Interactive analysts - going out to 2026, and you can see them free on our platform here.

We also provide an overview of the Rush Street Interactive Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com