YETI Holdings, Inc. (NYSE:YETI) Just Reported, And Analysts Assigned A US$44.75 Price Target
The analysts might have been a bit too bullish on YETI Holdings, Inc. (NYSE:YETI), given that the company fell short of expectations when it released its yearly results last week. Results look to have been somewhat negative - revenue fell 2.2% short of analyst estimates at US$1.7b, and statutory earnings of US$1.94 per share missed forecasts by 3.1%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for YETI Holdings
Taking into account the latest results, the consensus forecast from YETI Holdings' 17 analysts is for revenues of US$1.81b in 2024. This reflects a decent 9.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 22% to US$2.38. Before this earnings report, the analysts had been forecasting revenues of US$1.85b and earnings per share (EPS) of US$2.54 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
The average price target fell 6.4% to US$44.75, with reduced earnings forecasts clearly tied to a lower valuation estimate. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values YETI Holdings at US$55.00 per share, while the most bearish prices it at US$36.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await YETI Holdings shareholders.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that YETI Holdings' revenue growth is expected to slow, with the forecast 9.0% annualised growth rate until the end of 2024 being well below the historical 16% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.2% annually. Even after the forecast slowdown in growth, it seems obvious that YETI Holdings is also expected to grow faster than 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 YETI Holdings. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
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 2026, and you can see them free on our platform here.
You can also see our analysis of YETI Holdings' Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.
