Wolverine World Wide, Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
Investors in Wolverine World Wide, Inc. (NYSE:WWW) had a good week, as its shares rose 6.8% to close at US$9.88 following the release of its annual results. Things were not great overall, with a surprise (statutory) loss of US$0.51 per share on revenues of US$2.2b, even though the analysts had been expecting a profit. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Wolverine World Wide
Taking into account the latest results, the current consensus, from the nine analysts covering Wolverine World Wide, is for revenues of US$1.71b in 2024. This implies a substantial 24% reduction in Wolverine World Wide's revenue over the past 12 months. Earnings are expected to improve, with Wolverine World Wide forecast to report a statutory profit of US$0.72 per share. Before this earnings report, the analysts had been forecasting revenues of US$1.97b and earnings per share (EPS) of US$0.90 in 2024. Indeed, we can see that the analysts are a lot more bearish about Wolverine World Wide's prospects following the latest results, administering a real cut to revenue estimates and slashing their EPS estimates to boot.
The analysts made no major changes to their price target of US$9.21, suggesting the downgrades are not expected to have a long-term impact on Wolverine World Wide's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Wolverine World Wide at US$11.00 per share, while the most bearish prices it at US$7.50. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 24% annualised decline to the end of 2024. That is a notable change from historical growth of 4.0% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 7.0% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Wolverine World Wide is expected to lag the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Wolverine World Wide. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Wolverine World Wide going out to 2026, and you can see them free on our platform here..
Plus, you should also learn about the 2 warning signs we've spotted with Wolverine World Wide (including 1 which is a bit concerning) .
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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.
