Cipher Digital Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

There’s been a notable change in appetite for Cipher Digital Inc. (NASDAQ:CIFR) shares in the week since its quarterly report, with the stock down 20% to US$6.50. Revenues US$27m fell badly (30%!) short of analyst expectations, but Cipher Digital pulled a rabbit out of the hat when it came to earnings, with an unexpected statutory profit of US$0.08 per share well above the loss that the analystswere modelling. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the consensus forecast from Cipher Digital’s 18 analysts is for revenues of US$856.8m in 2027. This reflects a sizeable 486% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 83% to US$0.40. Before this earnings announcement, the analysts had been modelling revenues of US$852.5m and losses of US$0.35 per share in 2027. While next year’s revenue estimates held steady, there was also a notable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

Check out our latest analysis for Cipher Digital

The consensus price target fell 6.9% to US$26.57per share, with the analysts clearly concerned by ballooning losses. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Cipher Digital at US$59.00 per share, while the most bearish prices it at US$11.00. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn’t rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

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 Cipher Digital’s rate of growth is expected to accelerate meaningfully, with the forecast 3x annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 45% 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 17% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Cipher Digital to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates – from multiple Cipher Digital analysts – going out to 2028, and you can see them free on our platform here.

We don’t want to rain on the parade too much, but we did also find 3 warning signs for Cipher Digital (2 don’t sit too well with us!) that you need to be mindful of.

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