Earnings Beat: YETI Holdings, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
YETI Holdings, Inc. (NYSE:YETI) just released its latest quarterly results and things are looking bullish. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 13% higher than the analysts had forecast, at US$295m, while EPS were US$0.58 beating analyst models by 62%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on YETI Holdings after the latest results.
View our latest analysis for YETI Holdings
Taking into account the latest results, the consensus forecast from YETI Holdings' 13 analysts is for revenues of US$1.20b in 2021, which would reflect a solid 19% improvement in sales compared to the last 12 months. Per-share earnings are expected to jump 79% to US$2.03. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.16b and earnings per share (EPS) of US$1.64 in 2021. So it seems there's been a definite increase in optimism about YETI Holdings' future following the latest results, with a massive increase in the earnings per share forecasts in particular.
With these upgrades, we're not surprised to see that the analysts have lifted their price target 15% to US$64.79per share. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values YETI Holdings at US$75.00 per share, while the most bearish prices it at US$48.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that YETI Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 19% revenue growth noticeably faster than its historical growth of 11%p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that YETI Holdings is expected to grow much faster than its industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards YETI Holdings following these results. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for YETI Holdings going out to 2024, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 2 warning signs for YETI Holdings that you should be aware of.
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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