Vince Holding Corp. Just Reported And Analysts Have Been Lifting Their Price Targets
One of the biggest stories of last week was how Vince Holding Corp. (NYSE:VNCE) shares plunged 24% in the week since its latest quarterly results, closing yesterday at US$17.37. The results were positive, with revenue coming in at US$71m, beating analyst expectations by 4.0%. Following the result, 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 analysts have changed their mind on Vince Holding after the latest results.
See our latest analysis for Vince Holding
Taking into account the latest results, the latest consensus from Vince Holding's sole analyst is for revenues of US$297.3m in 2020, which would reflect an okay 2.3% improvement in sales compared to the last 12 months. Prior to the latest earnings, analysts were forecasting revenues of US$299.8m in 2020, and did not provide an EPS estimate. Overall it looks like Vince Holding is performing in line with analyst expectations, given analysts have updated their numbers and there's been no real change to next year's forecast following these results.
Additionally, the consensus price target for Vince Holding 30% to US$26.00, showing a clear increase in optimism from the analysts involved.
Further, we can compare these estimates to past performance, and see how Vince Holding forecasts compare to the wider market's forecast performance. For example, we noticed that Vince Holding's rate of growth is expected to accelerate meaningfully, with revenues forecast to grow at 2.3%, well above its historical decline of 4.5% a year over the past five years. Compare this against analyst estimates for the wider market, which suggest that (in aggregate) market revenues are expected to grow 7.0% next year. Although Vince Holding's revenues are expected to improve, it seems that analysts are still bearish on the business, forecasting it to grow slower than the wider market.
The Bottom Line
Probably the biggest thing to take away from these latest forecasts is that brokers are definitely optimistic on the business, given the forecast for profitability next year. On the plus side, there were no major changes to revenue estimates; although analyst forecasts imply revenues will perform worse than the wider market. Analysts also upgraded their price target, suggesting that analysts believe the intrinsic value of the business is likely to improve over time.
We have estimates for Vince Holding from one covering analyst, and you can see them free on our platform here.
You can also view our analysis of Vince Holding's balance sheet, and whether we think Vince Holding is carrying too much debt, for free on our platform here.
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