Yahoo Finance Earnings Update: Here's Why Analysts Just Lifted Their Lands' End, Inc. (NASDAQ:LE) Price Target To US$17.67
Lands' End, Inc. (NASDAQ:LE) investors will be delighted, with the company turning in some strong numbers with its latest results. Revenues and losses per share were both better than expected, with revenues of US$285m leading estimates by 6.2%. Statutory losses were smaller than the analystsexpected, coming in at US$0.20 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Lands' End
Following the recent earnings report, the consensus from three analysts covering Lands' End is for revenues of US$1.40b in 2025. This implies a small 3.4% decline in revenue compared to the last 12 months. Earnings are expected to improve, with Lands' End forecast to report a statutory profit of US$0.24 per share. Before this earnings report, the analysts had been forecasting revenues of US$1.39b and earnings per share (EPS) of US$0.16 in 2025. Although the revenue estimates have not really changed, we can see there's been a considerable lift to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
The consensus price target rose 13% to US$17.67, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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. The most optimistic Lands' End analyst has a price target of US$20.00 per share, while the most pessimistic values it at US$16.00. This is a very narrow spread of estimates, implying either that Lands' End is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Lands' End's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 4.5% annualised decline to the end of 2025. That is a notable change from historical growth of 1.8% 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 4.6% per year. It's pretty clear that Lands' End's revenues are expected to perform substantially worse 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 Lands' End's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
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. We have estimates - from multiple Lands' End analysts - going out to 2026, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Lands' End 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.
