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Analysts Have Been Trimming Their NewAge, Inc. (NASDAQ:NBEV) Price Target After Its Latest Report

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It's shaping up to be a tough period for NewAge, Inc. (NASDAQ:NBEV), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. Unfortunately, NewAge delivered a serious earnings miss. Revenues of US$63m were 11% below expectations, and statutory losses ballooned 121% to US$0.14 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for NewAge

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Following the latest results, NewAge's three analysts are now forecasting revenues of US$406.7m in 2021. This would be a huge 64% improvement in sales compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 92% to US$0.09. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$312.1m and losses of US$0.035 per share in 2021. So there's been quite a change-up of views after the recent consensus updates, with the analysts significantly increasing their revenue forecasts while also expecting losses per share to increase. It looks like the revenue growth will not be achieved without incremental costs.

It will come as no surprise that expanding losses caused the consensus price target to fall 17% to US$5.00with the analysts implicitly ranking ongoing losses as a greater concern than growing revenues.

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. Next year brings more of the same, according to the analysts, with revenue forecast to grow 64%, in line with its 60% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.5% per year. So it's pretty clear that NewAge is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for NewAge going out to 2022, and you can see them free on our platform here..

It is also worth noting that we have found 4 warning signs for NewAge (1 is a bit concerning!) that you need to take into consideration.

This article by Simply Wall St is general in nature. 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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