There's been a notable change in appetite for SmartRent, Inc. (NYSE:SMRT) shares in the week since its quarterly report, with the stock down 16% to US$1.14. Revenues of US$39m beat expectations by a respectable 5.0%, although statutory losses per share increased. SmartRent lost US$0.02, which was 33% more than what the analysts had included in their models. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Following the latest results, SmartRent's two analysts are now forecasting revenues of US$164.7m in 2026. This would be a solid 10% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 69% to US$0.04. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$159.7m and losses of US$0.065 per share in 2026. So it seems there's been a definite increase in optimism about SmartRent's future following the latest consensus numbers, with a very favorable reduction to the loss per share forecasts in particular.

The consensus price target fell 13%, to US$1.75, suggesting that the analysts remain pessimistic on the company, despite the improved earnings and revenue outlook.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting SmartRent's growth to accelerate, with the forecast 14% annualised growth to the end of 2026 ranking favourably alongside historical growth of 10% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 13% per year. SmartRent is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as 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 SmartRent's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on SmartRent. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

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.