iMedia Brands, Inc. (NASDAQ:IMBI) Released Earnings Last Week And Analysts Lifted Their Price Target To US$23.50
iMedia Brands, Inc. (NASDAQ:IMBI) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. The results look positive overall; while revenues of US$551m were in line with analyst predictions, statutory losses were 7.7% smaller than expected, with iMedia Brands losing US$1.14 per share. 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 iMedia Brands after the latest results.
View our latest analysis for iMedia Brands
Taking into account the latest results, the consensus forecast from iMedia Brands' four analysts is for revenues of US$691.5m in 2023, which would reflect a huge 25% improvement in sales compared to the last 12 months. Losses are expected to be contained, narrowing 17% from last year to US$0.85. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$690.4m and losses of US$0.60 per share in 2023. So it's pretty clear the analysts have mixed opinions on iMedia Brands even after this update; although they reconfirmed their revenue numbers, it came at the cost of a massive increase in per-share losses.
Although the analysts are now forecasting higher losses, the average price target rose 18% to 20, which could indicate that these losses are expected to be "one-off", or are not anticipated to have a longer-term impact on the business. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on iMedia Brands, with the most bullish analyst valuing it at US$37.00 and the most bearish at US$15.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the iMedia Brands' past performance and to peers in the same industry. For example, we noticed that iMedia Brands' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 25% growth to the end of 2023 on an annualised basis. That is well above its historical decline of 8.4% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 14% annually. So it looks like iMedia Brands is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for iMedia Brands going out to 2025, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 2 warning signs for iMedia Brands (1 is significant!) that you should be aware of.
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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.
