Analysts Have Just Cut Their Allbirds, Inc. (NASDAQ:BIRD) Revenue Estimates By 14%
One thing we could say about the analysts on Allbirds, Inc. (NASDAQ:BIRD) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.
Following the latest downgrade, the eight analysts covering Allbirds provided consensus estimates of US$214m revenue in 2024, which would reflect a not inconsiderable 16% decline on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 28% to US$0.71 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$249m and losses of US$0.66 per share in 2024. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.
View our latest analysis for Allbirds
The consensus price target fell 15% to US$0.97, implicitly signalling that lower earnings per share are a leading indicator for Allbirds' valuation.
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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 16% by the end of 2024. This indicates a significant reduction from annual growth of 5.9% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.9% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Allbirds is expected to lag the wider industry.
The Bottom Line
The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Allbirds. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Allbirds' revenues are expected to grow slower than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Given the stark change in sentiment, we'd understand if investors became more cautious on Allbirds after today.
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 Allbirds analysts - going out to 2025, and you can see them free on our platform here.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
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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.
