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Beyond, Inc. (NYSE:BYON) Just Reported And Analysts Have Been Cutting Their Estimates

Shareholders in Beyond, Inc. (NYSE:BYON) had a terrible week, as shares crashed 24% to US$16.86 in the week since its latest quarterly results. Revenues were in line with expectations, at US$382m, while statutory losses ballooned to US$1.58 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Beyond after the latest results.

Check out our latest analysis for Beyond

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Taking into account the latest results, the current consensus from Beyond's ten analysts is for revenues of US$1.66b in 2024. This would reflect a satisfactory 6.5% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 58% to US$3.42. Before this earnings announcement, the analysts had been modelling revenues of US$1.86b and losses of US$1.99 per share in 2024. There's been a definite change in sentiment in this update, with the analysts administering a notable cut to next year's revenue estimates, while at the same time increasing their loss per share forecasts.

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The average price target fell 27% to US$26.43, implicitly signalling that lower earnings per share are a leading indicator for Beyond's valuation. 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 Beyond, with the most bullish analyst valuing it at US$45.00 and the most bearish at US$17.00 per share. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Beyond's growth to accelerate, with the forecast 8.8% annualised growth to the end of 2024 ranking favourably alongside historical growth of 0.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.9% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Beyond to grow faster than 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 Beyond. They also downgraded Beyond's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Beyond's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Beyond going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Beyond has 1 warning sign we think you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.