Yahoo Finance High Tide Inc. (CVE:HITI) Second-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year
Shareholders might have noticed that High Tide Inc. (CVE:HITI) filed its quarterly result this time last week. The early response was not positive, with shares down 2.3% to CA$3.39 in the past week. It was a curious result overall, with revenues coming in 2.5% below what the analysts had expected, at CA$124m. The company broke even in terms of statutory earnings per share (EPS). Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for High Tide
Taking into account the latest results, the consensus forecast from High Tide's four analysts is for revenues of CA$523.2m in 2024. This reflects an okay 3.8% improvement in revenue compared to the last 12 months. Before this latest report, the consensus had been expecting revenues of CA$531.1m and CA$0.18 per share in losses. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.
There's been no real change to the consensus price target of CA$6.00, with High Tide seemingly executing 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 High Tide at CA$6.00 per share, while the most bearish prices it at CA$4.50. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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. It's pretty clear that there is an expectation that High Tide's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 7.8% growth on an annualised basis. This is compared to a historical growth rate of 49% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 10% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than High Tide.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that High Tide's revenue is expected to perform worse than the wider industry. The consensus price target held steady at CA$6.00, with the latest estimates not enough to have an impact on their price targets.
At least one of High Tide's four analysts has provided estimates out to 2026, which can be seen for free on our platform here.
Even so, be aware that High Tide is showing 2 warning signs in our investment analysis , you should know about...
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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.
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