Airbnb, Inc. (NASDAQ:ABNB) shareholders are probably feeling a little disappointed, since its shares fell 6.6% to US$141 in the week after its latest first-quarter results. Airbnb beat revenue forecasts by a solid 12%, hitting US$887m. Statutory losses also blew out, with the loss per share reaching US$1.95, some 55% bigger than the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Airbnb after the latest results.

Check out our latest analysis for Airbnb

Taking into account the latest results, the current consensus from Airbnb's 32 analysts is for revenues of US$4.80b in 2021, which would reflect a substantial 42% increase on its sales over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 90% to US$1.58. Before this latest report, the consensus had been expecting revenues of US$4.79b and US$1.59 per share in losses.

As a result there was no major change to the consensus price target of US$176, implying that the business is trading roughly in line with expectations despite ongoing losses. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Airbnb analyst has a price target of US$245 per share, while the most pessimistic values it at US$74.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that Airbnb is forecast to grow faster in the future than it has in the past, with revenues expected to display 60% annualised growth until the end of 2021. If achieved, this would be a much better result than the 30% annual decline over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 22% per year. Not only are Airbnb's revenues expected to improve, it seems that the analysts are also expecting it to grow faster 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Airbnb. Long-term earnings power is much more important than next year's profits. We have forecasts for Airbnb going out to 2025, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Airbnb you should be aware of.

This article by Simply Wall St is general in nature. 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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