It’s been a sad week for Nerdy, Inc. (NYSE:NRDY), who’ve watched their investment drop 10% to US$1.28 in the week since the company reported its quarterly result. Results look to have been somewhat negative – revenue fell 2.9% short of analyst estimates at US$45m, although statutory losses were somewhat better. The per-share loss was US$0.07, 29% smaller than the analysts were expecting prior to the result. 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.
Taking into account the latest results, the most recent consensus for Nerdy from seven analysts is for revenues of US$193.6m in 2025. If met, it would imply a solid 8.6% increase on its revenue over the past 12 months. Losses are expected to hold steady at around US$0.37. Before this earnings announcement, the analysts had been modelling revenues of US$195.0m and losses of US$0.35 per share in 2025. Overall it looks as though the analysts were a bit mixed on the latest consensus updates. Although revenue forecasts held steady, the consensus also made a pronounced increase to its losses per share forecasts.
Check out our latest analysis for Nerdy
The consensus price target held steady at US$2.08, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company’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. Currently, the most bullish analyst values Nerdy at US$3.00 per share, while the most bearish prices it at US$1.50. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It’s clear from the latest estimates that Nerdy’s rate of growth is expected to accelerate meaningfully, with the forecast 18% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 5.9% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.6% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Nerdy to grow faster than the wider industry.
