Analyst Estimates: Here's What Brokers Think Of Neighborhood Intelligence, Inc. (NASDAQ:NXH) After Its Third-Quarter Report

Neighborhood Intelligence, Inc. (NASDAQ:NXH) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. Results overall were solid, with revenues arriving 2.9% better than analyst forecasts at US$509m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.28 per share, were 2.9% smaller than the analysts expected. 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 Neighborhood Intelligence after the latest results.

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Taking into account the latest results, the current consensus from Neighborhood Intelligence's five analysts is for revenues of US$2.16b in 2027. This would reflect a substantial 55% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 29% to US$0.67. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$2.16b and losses of US$0.64 per share in 2027. 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 moderate increase in its losses per share forecasts.

See our latest analysis for Neighborhood Intelligence

As a result, there was no major change to the consensus price target of US$8.50, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Neighborhood Intelligence analyst has a price target of US$17.00 per share, while the most pessimistic values it at US$2.00. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

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. One thing stands out from these estimates, which is that Neighborhood Intelligence is forecast to grow faster in the future than it has in the past, with revenues expected to display 42% annualised growth until the end of 2027. If achieved, this would be a much better result than the 20% annual decline 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 6.0% annually. Not only are Neighborhood Intelligence'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 note is the forecast of increased losses next year, suggesting all may not be well at Neighborhood Intelligence. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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 Neighborhood Intelligence. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Neighborhood Intelligence analysts - going out to 2028, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Neighborhood Intelligence (1 makes us a bit uncomfortable!) that you should be aware of.

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