Root, Inc. (NASDAQ:ROOT) investors will be delighted, with the company turning in some strong numbers with its latest results. Revenues were better than expected, with US$455m in revenue some 20% ahead of forecasts. The company still lost US$10.24 per share, although the losses were marginally smaller than the analysts expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Root

Taking into account the latest results, the consensus forecast from Root's seven analysts is for revenues of US$892.0m in 2024. This reflects a substantial 96% improvement in revenue compared to the last 12 months. Losses are expected to hold steady at around US$10.10. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$622.0m and losses of US$10.48 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

It will come as no surprise to learn thatthe analysts have increased their price target for Root 6.9% to US$11.63on the back of these upgrades. 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. There are some variant perceptions on Root, with the most bullish analyst valuing it at US$15.00 and the most bearish at US$10.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Root's past performance and to peers in the same industry. It's clear from the latest estimates that Root's rate of growth is expected to accelerate meaningfully, with the forecast 96% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 7.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.8% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Root is expected to grow much faster than its industry.