Yahoo Finance a.k.a. Brands Holding Corp. (NYSE:AKA) Analysts Are Cutting Their Estimates: Here's What You Need To Know
Shareholders in a.k.a. Brands Holding Corp. (NYSE:AKA) had a terrible week, as shares crashed 23% to US$10.46 in the week since its latest full-year results. Revenues were in line with expectations, at US$546m, while statutory losses ballooned to US$9.24 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.
View our latest analysis for a.k.a. Brands Holding
Following last week's earnings report, a.k.a. Brands Holding's five analysts are forecasting 2024 revenues to be US$549.8m, approximately in line with the last 12 months. Losses are predicted to fall substantially, shrinking 82% to US$1.70. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$581.9m and losses of US$1.49 per share in 2024. So it's pretty clear the analysts have mixed opinions on a.k.a. Brands Holding after this update; revenues were downgraded and per-share losses expected to increase.
The average price target lifted 6.9% to US$9.63, clearly signalling that the weaker revenue and EPS outlook are not expected to weigh on the stock over the longer term. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic a.k.a. Brands Holding analyst has a price target of US$11.00 per share, while the most pessimistic values it at US$8.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await a.k.a. Brands Holding shareholders.
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. We would highlight that a.k.a. Brands Holding's revenue growth is expected to slow, with the forecast 0.6% annualised growth rate until the end of 2024 being well below the historical 21% p.a. growth over the last three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.2% annually. Factoring in the forecast slowdown in growth, it seems obvious that a.k.a. Brands Holding is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at a.k.a. Brands Holding. On the negative side, they also downgraded their revenue estimates, and 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple a.k.a. Brands Holding analysts - going out to 2026, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 2 warning signs for a.k.a. Brands Holding 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.
