Yahoo Finance TrueBlue, Inc. (NYSE:TBI) First-Quarter Results: Here's What Analysts Are Forecasting For This Year
TrueBlue, Inc. (NYSE:TBI) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It looks like the results were pretty good overall. While revenues of US$403m were in line with analyst predictions, statutory losses were much smaller than expected, with TrueBlue losing US$0.05 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for TrueBlue
After the latest results, the consensus from TrueBlue's three analysts is for revenues of US$1.70b in 2024, which would reflect a noticeable 7.6% decline in revenue compared to the last year of performance. Losses are predicted to fall substantially, shrinking 66% to US$0.13. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$1.73b and losses of US$0.51 per share in 2024. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a considerable decrease in losses per share in particular.
The average price target held steady at US$14.33, seeming to indicate that business is performing in line with expectations. 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. Currently, the most bullish analyst values TrueBlue at US$17.00 per share, while the most bearish prices it at US$13.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One more thing stood out to us about these estimates, and it's the idea that TrueBlue's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 9.9% to the end of 2024. This tops off a historical decline of 3.2% a year over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 5.7% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect TrueBlue to suffer worse than the wider industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss 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. 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.
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 TrueBlue analysts - going out to 2025, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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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.
