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Yahoo
a day ago
- Business
- Yahoo
Growth Investors: Industry Analysts Just Upgraded Their Core Lithium Ltd (ASX:CXO) Revenue Forecasts By 13%
Core Lithium Ltd (ASX:CXO) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Core Lithium will make substantially more sales than they'd previously expected. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Following the upgrade, the consensus from four analysts covering Core Lithium is for revenues of AU$675k in 2025, implying a disturbing 99% decline in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of AU$595k in 2025. It looks like there's been a clear increase in optimism around Core Lithium, given the solid increase in revenue forecasts. See our latest analysis for Core Lithium These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Core Lithium's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 99% by the end of 2025. This indicates a significant reduction from annual growth of 75% 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 6.5% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Core Lithium is expected to lag the wider industry. The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Core Lithium. Analysts are definitely bullish on Core Lithium, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including a short cash runway. For more information, you can click through to our platform to learn more about this and the 2 other risks we've identified . Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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.
Yahoo
01-06-2025
- Business
- Yahoo
Earnings Release: Here's Why Analysts Cut Their Bath & Body Works, Inc. (NYSE:BBWI) Price Target To US$42.33
Bath & Body Works, Inc. (NYSE:BBWI) shareholders are probably feeling a little disappointed, since its shares fell 7.1% to US$28.12 in the week after its latest first-quarter results. Bath & Body Works reported in line with analyst predictions, delivering revenues of US$1.4b and statutory earnings per share of US$0.49, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Taking into account the latest results, Bath & Body Works' 16 analysts currently expect revenues in 2026 to be US$7.48b, approximately in line with the last 12 months. Statutory earnings per share are forecast to dip 9.7% to US$3.48 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$7.49b and earnings per share (EPS) of US$3.56 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts. View our latest analysis for Bath & Body Works It might be a surprise to learn that the consensus price target fell 5.8% to US$42.33, with the analysts clearly linking lower forecast earnings to the performance of the stock price. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Bath & Body Works at US$63.00 per share, while the most bearish prices it at US$30.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business. 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. For example, we noticed that Bath & Body Works' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 2.4% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 4.2% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 4.7% per year. Although Bath & Body Works' revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry. The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Bath & Body Works. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Bath & Body Works' revenue is expected to perform worse 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. With that in mind, we wouldn't be too quick to come to a conclusion on Bath & Body Works. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Bath & Body Works going out to 2028, and you can see them free on our platform here.. It is also worth noting that we have found 3 warning signs for Bath & Body Works (1 is potentially serious!) that you need to take into consideration. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
