These Analysts Just Made An Downgrade To Their a.k.a. Brands Holding Corp. (NYSE:AKA) EPS Forecasts

Simply Wall St
·3 min read

One thing we could say about the analysts on a.k.a. Brands Holding Corp. (NYSE:AKA) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

Following the latest downgrade, the current consensus, from the eight analysts covering a.k.a. Brands Holding, is for revenues of US$579m in 2023, which would reflect a small 5.4% reduction in a.k.a. Brands Holding's sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 99% to US$0.02. Prior to this update, the analysts had been forecasting revenues of US$664m and earnings per share (EPS) of US$0.07 in 2023. So we can see that the consensus has become notably more bearish on a.k.a. Brands Holding's outlook with these numbers, making a measurable cut to this year's revenue estimates. Furthermore, they expect the business to be loss-making this year, compared to their previous forecasts of a profit.

Check out our latest analysis for a.k.a. Brands Holding

earnings-and-revenue-growth
earnings-and-revenue-growth

The consensus price target fell 23% to US$2.34, implicitly signalling that lower earnings per share are a leading indicator for a.k.a. Brands Holding's valuation. 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. The most optimistic a.k.a. Brands Holding analyst has a price target of US$3.00 per share, while the most pessimistic values it at US$1.40. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying 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. We would highlight that sales are expected to reverse, with a forecast 5.4% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 48% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 11% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - a.k.a. Brands Holding is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that analysts are expecting a.k.a. Brands Holding to become unprofitable this year. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that a.k.a. Brands Holding's revenues are expected to grow slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of a.k.a. Brands Holding.

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 a.k.a. Brands Holding going out to 2025, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

  • Up next
  • Up next
  • Up next
  • Up next

Latest Stories

  • The effect of hard water on your hair – and how to treat it

    Is hard water damaging your hair? Here's how to spot the signs and prevent it – read more

  • John Cleese removes racial slurs from Fawlty Towers play as ‘we’re dealing with the literal minded’

    ‘Literal-minded people don’t understand it’s a joke,’ comedy star said

  • Stormzy opens community centre as No 10 criticised for failing youth services

    “It’s wonderful that Stormzy is doing this but it shows just how much (...) government is failing that a rapper and a huge corporation are stepping in to do their job for them,” one Londoner said.

  • Checking in on the AL Central: Twins taking their turn as the hottest team in one of MLB's most competitive divisions

    After a month of play, four AL Central teams are above .500, a distinction no other division in baseball can claim.

  • DoorDash, Shake Shack earnings point to consumer troubles

    Shares of DoorDash (DASH) and Shake Shack (SHAK) are sliding on Thursday morning as both companies posted mixed first quarter earnings. The companies are feeling the pressure of weakening consumer demand, with DoorDash posting a profit forecast that disappointed Wall Street. Yahoo Finance Anchors Madison Mills and Brian Sozzi break down the latest developments for these companies and how it will impact them moving forward. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Nicholas Jacobino

  • 8 signs of a heart attack, as study reveals anger increases risk for 40 minutes

    Feelings of rage could lead to a heart attack, researchers have found.

  • Campus protests live: Police clear UCLA encampment and arrest Gaza demonstrators after refusing to disperse

    Activists don hard hats, goggles and respirator masks in anticipation of police raid

  • YETI Holdings (NYSE:YETI) Might Become A Compounding Machine

    To find a multi-bagger stock, what are the underlying trends we should look for in a business? Ideally, a business will...

  • Ex-Minister Deletes Post Urging Constituents To Vote After Making 1 Crucial Error

    Brandon Lewis was asking constituents to do the impossible.

  • Orangutan's use of medicinal plant to treat wound intrigues scientists

    In June 2022, a male Sumatran orangutan named Rakus sustained a facial wound below the right eye, apparently during a fight with another male orangutan at the Suaq Balimbing research site, a protected rainforest area in Indonesia. What Rakus did three days later really caught the attention of scientists. Researchers on Thursday described observing how Rakus appeared to treat the wound using a plant known for its pain-relieving properties and for supporting wound healing due to its antibacterial, anti-inflammatory, anti-fungal and antioxidant qualities.

  • Google restricts promotion of deep fake sexual content

    These restrictions now apply to Shopping ads and will be enforced across all types of ads after May 30.

  • Should Investors be Confident in Boston Beer Company’s (SAM) Returns?

    SouthernSun Asset Management, LLC, an investment management firm, released its “SouthernSun SMID Cap Strategy” first quarter 2024 investor letter. A copy of the same can be downloaded here. In the first quarter, the strategy returned 8.53% on a gross basis (8.33% net) compared to a 6.92% return for the Russell 2500 Index and 6.07% for […]

  • Apple to extend new core technology fee to iPadOS apps

    Apple will extend a newly introduced core technology fee to iPadOS apps downloaded on its App Store after the operating system for iPads was added to a list of key services subject to EU tech rules, the iPhone maker said on Thursday. Apple in March announced a core technology fee (CTF) of 50 euro cents per user account per year for major app developers even if they do not use any of its payment services or its App Store, with the first 1 million user accounts exempted from the fee. The CTF is part of a set of new charges linked to changes to comply with the Digital Markets Act (DMA) which requires Apple to open up its closed ecosystem by allowing apps developers to distribute their iPhone apps directly to consumers instead of through its App Store, among other obligations.

  • Q1 2024 Everspin Technologies Inc Earnings Call

    Q1 2024 Everspin Technologies Inc Earnings Call

  • Man who took part in conspiracy to con victims out of $600,000 sentenced to prison

    The victims were not from Kentucky but the scammers used Kentucky addresses to receive payments from people.

  • Westwood Holdings Group, Inc. (NYSE:WHG) Q1 2024 Earnings Call Transcript

    Westwood Holdings Group, Inc. (NYSE:WHG) Q1 2024 Earnings Call Transcript May 1, 2024 Westwood Holdings Group, Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here). Operator: Good day, and thank you for standing by. Welcome to the First Quarter 2024 Westwood […]

  • Probability of 3 rate cuts this year still uncertain: Strategist

    With the Federal Reserve keeping interest rates higher for longer, the debate over when the next rate cut will occur is keeping Wall Street on its toes. Many events on the horizon could affect the Fed as it analyzes economic data, but the upcoming Presidential election could be a big factor. Deutsche Bank Americas Chief Investment Officer Deepak Puri joins Catalysts to discuss the path for the Federal Reserve to cut rates multiple times and the factors that impact the Fed's decisions. "Our base case is that we still are going to see one to two rate cuts this year and another one early next year. And I think the rate cuts, it's really the timing that's been pushed back. Now, looking at probably June, July out, September most likely the first month where rate cuts would come into picture, and most likely, post election. You have two Fed meetings post elections, and those could be the live meetings for rate cuts and that's what market needs to factor now in." For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Nicholas Jacobino

  • Original photographs of 1939 dig go on display at Sutton Hoo

    The Anglo-Saxon treasures unearthed at Sutton Hoo in Suffolk have been described as one of the greatest archaeological discoveries of all time.

  • CoreCard Corp (CCRD) Q1 Earnings: Aligns with Revenue Projections but Misses on EPS Estimates

    Insight into CoreCard Corp's Financial Performance and Future Outlook

  • Sound Off for May 3, 2024

    Unhappy employees The Sun Herald covered an article by McClatchy that revealed that the South has some of the unhappiest employees in the nation. Six of the bottom ten were in the South. All six have Republican governors. I wonder if there’s any correlation? Not necessarily because of anything the governors are doing, but because it takes a Republican majority in a state to elect them. Republicans seem to want to return to glory days of yesteryear and it ain’t happening where they dominate.