Robinhood Markets, Inc. (NASDAQ:HOOD) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of US$3.0b, some 3.3% above estimates, and statutory earnings per share (EPS) coming in at US$1.56, 59% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Robinhood Markets after the latest results.

See our latest analysis for Robinhood Markets

Taking into account the latest results, the current consensus from Robinhood Markets' 14 analysts is for revenues of US$3.71b in 2025. This would reflect a major 26% increase on its revenue over the past 12 months. Statutory earnings per share are expected to sink 11% to US$1.42 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$3.35b and earnings per share (EPS) of US$1.37 in 2025. Sentiment certainly seems to have improved after the latest results, with a solid increase in revenue and a modest lift to earnings per share estimates.

It will come as no surprise to learn that the analysts have increased their price target for Robinhood Markets 6.0% to US$68.59on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Robinhood Markets, with the most bullish analyst valuing it at US$105 and the most bearish at US$39.00 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Robinhood Markets' past performance and to peers in the same industry. The analysts are definitely expecting Robinhood Markets' growth to accelerate, with the forecast 26% annualised growth to the end of 2025 ranking favourably alongside historical growth of 20% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Robinhood Markets to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Robinhood Markets following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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. At Simply Wall St, we have a full range of analyst estimates for Robinhood Markets going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - Robinhood Markets has 1 warning sign we think you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.