Robinhood Markets, Inc. (NASDAQ:HOOD) missed earnings with its latest third-quarter results, disappointing overly-optimistic forecasters. Robinhood Markets missed analyst forecasts, with revenues of US$637m and statutory earnings per share (EPS) of US$0.17, falling short by 3.2% and 3.4% respectively. The analysts 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. Readers will be glad to know we’ve aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Robinhood Markets after the latest results.
View our latest analysis for Robinhood Markets
After the latest results, the 13 analysts covering Robinhood Markets are now predicting revenues of US$2.70b in 2025. If met, this would reflect a meaningful 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 2.4% to US$0.61. In the lead-up to this report, the analysts had been modelling revenues of US$2.71b and earnings per share (EPS) of US$0.62 in 2025. So it’s pretty clear that, although the analysts have updated their estimates, there’s been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$26.09. That’s not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Robinhood Markets analyst has a price target of US$33.00 per share, while the most pessimistic values it at US$19.50. 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 Robinhood Markets shareholders.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Robinhood Markets’ revenue growth is expected to slow, with the forecast 9.5% annualised growth rate until the end of 2025 being well below the historical 19% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.0% annually. Even after the forecast slowdown in growth, it seems obvious that Robinhood Markets is also expected to grow faster than the wider industry.
