Rimini Street, Inc. Just Missed Earnings - But Analysts Have Updated Their Models

Shareholders of Rimini Street, Inc. (NASDAQ:RMNI) will be pleased this week, given that the stock price is up 17% to US$4.05 following its latest quarterly results. Revenue of US$105m surpassed estimates by 2.7%, although statutory earnings per share missed badly, coming in 67% below expectations at US$0.01 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Taking into account the latest results, the current consensus from Rimini Street's five analysts is for revenues of US$440.6m in 2026. This would reflect a reasonable 4.2% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to dive 27% to US$0.28 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$438.1m and earnings per share (EPS) of US$0.26 in 2026. So the consensus seems to have become somewhat more optimistic on Rimini Street's earnings potential following these results. View our latest analysis for Rimini Street There's been no major changes to the consensus price target of US$6.20, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Rimini Street, with the most bullish analyst valuing it at US$8.00 and the most bearish at US$4.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business. Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Rimini Street's growth to accelerate, with the forecast 5.7% annualised growth to the end of 2026 ranking favourably alongside historical growth of 3.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 16% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Rimini Street is expected to grow slower than the wider industry. The Bottom Line The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Rimini Street following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 Rimini Street. Long-term earnings power is much more important than next year's profits. We have forecasts for Rimini Street going out to 2027, and you can see them free on our platform here. You still need to take note of risks, for example - Rimini Street has 5 warning signs (and 2 which are significant) we think you should know about.