Chime Financial, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year
Shareholders of Chime Financial, Inc. (NASDAQ:CHYM) will be pleased this week, given that the stock price is up 12% to US$31.33 following its latest quarterly results. Revenues were US$718m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$0.11 were also better than expected, beating analyst predictions by 11%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the most recent consensus for Chime Financial from 21 analysts is for revenues of US$3.41b in 2027. If met, it would imply a sizeable 30% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 391% to US$1.03. Before this earnings report, the analysts had been forecasting revenues of US$3.37b and earnings per share (EPS) of US$0.95 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
Check out our latest analysis for Chime Financial
The consensus price target was unchanged at US$40.86, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Chime Financial analyst has a price target of US$50.00 per share, while the most pessimistic values it at US$32.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Chime Financial's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Chime Financial'shistorical trends, as the 23% annualised revenue growth to the end of 2027 is roughly in line with the 24% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.4% annually. So although Chime Financial is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Chime Financial's earnings potential next year. 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Chime Financial going out to 2028, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Chime Financial , and understanding them should be part of your investment process.
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