It's been a sad week for Blend Labs, Inc. (NYSE:BLND), who've watched their investment drop 12% to US$3.13 in the week since the company reported its full-year result. Blend Labs reported revenues of US$162m, in line with expectations, but it unfortunately also reported (statutory) losses of US$0.24 per share, which were slightly larger than expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for Blend Labs
After the latest results, the seven analysts covering Blend Labs are now predicting revenues of US$182.8m in 2025. If met, this would reflect a notable 13% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 68% to US$0.074. Before this latest report, the consensus had been expecting revenues of US$195.6m and US$0.062 per share in losses. While this year's revenue estimates dropped there was also a massive increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
The average price target fell 5.7% to US$5.14, implicitly signalling that lower earnings per share are a leading indicator for Blend Labs' valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Blend Labs, with the most bullish analyst valuing it at US$7.00 and the most bearish at US$3.50 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Blend Labs' growth to accelerate, with the forecast 13% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Blend Labs 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 increased their loss per share estimates for next year. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Blend Labs' future valuation.
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 forecasts for Blend Labs going out to 2027, and you can see them free on our platform here.
You can also see our analysis of Blend Labs' Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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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