Some Analysts Just Cut Their Wolverine World Wide, Inc. (NYSE:WWW) Estimates
One thing we could say about the analysts on Wolverine World Wide, Inc. (NYSE:WWW) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.
Following the downgrade, the consensus from eight analysts covering Wolverine World Wide is for revenues of US$2.3b in 2023, implying a definite 11% decline in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$2.5b of revenue in 2023. It looks like forecasts have become a fair bit less optimistic on Wolverine World Wide, given the substantial drop in revenue estimates.
View our latest analysis for Wolverine World Wide
Notably, the analysts have cut their price target 30% to US$13.25, suggesting concerns around Wolverine World Wide's valuation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 21% by the end of 2023. This indicates a significant reduction from annual growth of 4.1% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 7.6% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Wolverine World Wide is expected to lag the wider industry.
The Bottom Line
The clear low-light was that analysts slashing their revenue forecasts for Wolverine World Wide this year. They're also anticipating slower revenue growth than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of Wolverine World Wide's future valuation. Given the stark change in sentiment, we'd understand if investors became more cautious on Wolverine World Wide after today.
Hungry for more information? At least one of Wolverine World Wide's eight analysts has provided estimates out to 2025, which can be seen for 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.
