Yahoo Finance Analysts Have Lowered Expectations For Sportsman's Warehouse Holdings, Inc. (NASDAQ:SPWH) After Its Latest Results
The investors in Sportsman's Warehouse Holdings, Inc.'s (NASDAQ:SPWH) will be rubbing their hands together with glee today, after the share price leapt 23% to US$3.82 in the week following its yearly results. Revenue hit US$1.3b in line with forecasts, although the company reported a statutory loss per share of US$0.77 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for Sportsman's Warehouse Holdings
Taking into account the latest results, the current consensus, from the four analysts covering Sportsman's Warehouse Holdings, is for revenues of US$1.20b in 2025. This implies a noticeable 6.6% reduction in Sportsman's Warehouse Holdings' revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 92% to US$0.06. Before this earnings announcement, the analysts had been modelling revenues of US$1.27b and losses of US$0.03 per share in 2025. So it's pretty clear the analysts have mixed opinions on Sportsman's Warehouse Holdings after this update; revenues were downgraded and per-share losses expected to increase.
The consensus price target fell 7.3% to US$4.75, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Sportsman's Warehouse Holdings analyst has a price target of US$6.00 per share, while the most pessimistic values it at US$4.00. 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.
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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 6.6% by the end of 2025. This indicates a significant reduction from annual growth of 9.7% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.0% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Sportsman's Warehouse Holdings is expected to lag 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 Sportsman's Warehouse Holdings. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
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 Sportsman's Warehouse Holdings going out to 2026, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 1 warning sign for Sportsman's Warehouse Holdings that you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
