OneSpaWorld Holdings Limited Just Missed Earnings With A Surprise Loss - Here Are Analysts Latest Forecasts
OneSpaWorld Holdings Limited (NASDAQ:OSW) shareholders are probably feeling a little disappointed, since its shares fell 5.8% to US$13.15 in the week after its latest annual results. Revenues came in at US$794m, in line with estimates, while OneSpaWorld Holdings reported a statutory loss of US$0.03 per share, well short of prior analyst forecasts for a profit. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on OneSpaWorld Holdings after the latest results.
See our latest analysis for OneSpaWorld Holdings
Taking into account the latest results, the current consensus from OneSpaWorld Holdings' four analysts is for revenues of US$861.5m in 2024. This would reflect a notable 8.5% increase on its revenue over the past 12 months. Earnings are expected to improve, with OneSpaWorld Holdings forecast to report a statutory profit of US$0.52 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$857.7m and earnings per share (EPS) of US$0.47 in 2024. So the consensus seems to have become somewhat more optimistic on OneSpaWorld Holdings' earnings potential following these results.
There's been no major changes to the consensus price target of US$17.67, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. There are some variant perceptions on OneSpaWorld Holdings, with the most bullish analyst valuing it at US$21.00 and the most bearish at US$16.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that OneSpaWorld Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 8.5% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 7.0% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 12% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, OneSpaWorld Holdings is expected to grow slower than the wider 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 OneSpaWorld Holdings following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$17.67, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for OneSpaWorld Holdings going out to 2026, and you can see them free on our platform here..
It is also worth noting that we have found 1 warning sign for OneSpaWorld Holdings that you need to take into consideration.
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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.
