ThredUp Inc. (NASDAQ:TDUP) Just Reported And Analysts Have Been Cutting Their Estimates

There's been a major selloff in ThredUp Inc. (NASDAQ:TDUP) shares in the week since it released its quarterly report, with the stock down 38% to US$1.29. Revenue hit US$88m in line with forecasts, although the company reported a statutory loss per share of US$0.04 that was somewhat smaller than the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on ThredUp after the latest results.

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Following the latest results, ThredUp's seven analysts are now forecasting revenues of US$355.6m in 2027. This would be an okay 4.5% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 41% to US$0.10. Before this earnings announcement, the analysts had been modelling revenues of US$382.5m and losses of US$0.10 per share in 2027.

See our latest analysis for ThredUp

The consensus price target was broadly unchanged at US$7.24, implying that the business is performing roughly in line with expectations, despite a downwards adjustment to forecast revenue next year. 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 ThredUp, with the most bullish analyst valuing it at US$10.00 and the most bearish at US$5.70 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. We can infer from the latest estimates that forecasts expect a continuation of ThredUp'shistorical trends, as the 3.6% annualised revenue growth to the end of 2027 is roughly in line with the 3.9% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.0% per year. So it's pretty clear that ThredUp is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at US$7.24, 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. At Simply Wall St, we have a full range of analyst estimates for ThredUp going out to 2028, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for ThredUp (1 is concerning) you should be aware of.

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