A week ago, WM Technology, Inc. (NASDAQ:MAPS) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. The company beat forecasts, with revenue of US$47m, some 5.8% above estimates, and statutory earnings per share (EPS) coming in at US$0.03, 50% ahead of expectations. The analyst 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. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

See our latest analysis for WM Technology NasdaqGS:MAPS Earnings and Revenue Growth November 15th 2024

Taking into account the latest results, the most recent consensus for WM Technology from sole analyst is for revenues of US$196.0m in 2025. If met, it would imply a satisfactory 6.9% increase on its revenue over the past 12 months. Earnings are expected to improve, with WM Technology forecast to report a statutory profit of US$0.16 per share. In the lead-up to this report, the analyst had been modelling revenues of US$189.5m and earnings per share (EPS) of US$0.14 in 2025. There's been a pretty noticeable increase in sentiment, with the analyst upgrading revenues and making a nice increase in earnings per share in particular.

As a result, it might be a surprise to see thatthe analyst has cut their price target 26% to US$2.61, which could suggest the forecast improvement in performance is not expected to last.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that WM Technology's rate of growth is expected to accelerate meaningfully, with the forecast 5.5% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 12% annually. So it's clear that despite the acceleration in growth, WM Technology is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards WM Technology following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of WM Technology's future valuation.

Story Continues

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2025, which can be seen for free  on our platform here.

It is also worth noting that we have found 1 warning sign for WM Technology that you need to take into consideration.

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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.

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