GrowGeneration Corp. (NASDAQ:GRWG) just released its latest quarterly results and things are looking bullish. It looks like a positive result overall, with revenues of US$38m beating forecasts by 5.3%. Statutory losses of US$0.08 per share were 5.3% smaller than the analysts expected, likely helped along by the higher revenues. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Following last week's earnings report, GrowGeneration's three analysts are forecasting 2026 revenues to be US$166.0m, approximately in line with the last 12 months. Losses are predicted to fall substantially, shrinking 54% to US$0.15. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$164.7m and losses of US$0.22 per share in 2026. Although the revenue estimates have not really changed GrowGeneration'sfuture looks a little different to the past, with a very favorable reduction to the loss per share forecasts in particular.

The average price target rose 6.7% to US$2.00, with the analysts signalling that the forecast reduction in losses would be a positive for the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic GrowGeneration analyst has a price target of US$2.50 per share, while the most pessimistic values it at US$1.50. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the GrowGeneration's past performance and to peers in the same industry. From these estimates it looks as though the analysts expect the years of declining revenue to come to an end, given the flat forecast out to 2026. That would be a definite improvement, given that the past five years have seen revenue shrink 19% annually. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 6.2% annually. Although GrowGeneration's revenues are expected to improve, it seems that it is still expected to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for GrowGeneration going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks.

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.