Investors in Marchex, Inc. (NASDAQ:MCHX) had a good week, as its shares rose 5.4% to close at US$1.76 following the release of its third-quarter results. It was a pretty bad result overall; while revenues were in line with expectations at US$13m, statutory losses exploded to US$0.02 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Marchex after the latest results.

Check out our latest analysis for Marchex

Taking into account the latest results, the consensus forecast from Marchex's two analysts is for revenues of US$50.4m in 2025. This reflects an okay 3.8% improvement in revenue compared to the last 12 months. The loss per share is expected to ameliorate slightly, reducing to US$0.09. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$51.9m and losses of US$0.07 per share in 2025. While next 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.

There was no major change to the consensus price target of US$3.25, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that Marchex's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 3.0% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 1.5% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.6% annually. So while Marchex's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. They also downgraded their 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 held steady at US$3.25, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Marchex going out as far as 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Marchex you should be aware of.

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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.