1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS) last week reported its latest first-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Sales of US$187m came in 3.3% ahead of expectations, although earnings didn’t fare nearly so well, recording a loss of US$0.24, a 15% miss. 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. Readers will be glad to know we’ve aggregated the latest forecasts to see whether analysts have changed their mind on 1-800-FLOWERS.COM after the latest results.
View our latest analysis for 1-800-FLOWERS.COM
Taking into account the latest results, the latest consensus from 1-800-FLOWERS.COM’s six analysts is for revenues of US$1.4b in 2020, which would reflect a modest 6.7% improvement in sales compared to the last 12 months. Earnings per share are forecast to be US$0.57, approximately in line with the last 12 months. Yet prior to the latest earnings, analysts had been forecasting revenues of US$1.3b and earnings per share (EPS) of US$0.58 in 2020. So it’s pretty clear that, although analysts have updated their estimates, there’s been no major change in expectations for the business following the latest results.
Analysts reconfirmed their price target of US$25.00, showing that the business is executing well and in line with expectations. The consensus price target just an average of individual analyst targets, so – considering that the price target changed, it would be handy to see how wide the range of underlying estimates is. The most optimistic 1-800-FLOWERS.COM analyst has a price target of US$27.00 per share, while the most pessimistic values it at US$22.00. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. Analysts are definitely expecting 1-800-FLOWERS.COM’s growth to accelerate, with the forecast 6.7% growth ranking favourably alongside historical growth of 3.9% per annum over the past five years. Compare this with other companies in the same market, which are forecast to see a revenue decline of 17% next year. So it’s clear that despite the acceleration in growth, 1-800-FLOWERS.COM is expected to grow meaningfully slower than the market average.
The Bottom Line
The most obvious conclusion from these results is that there’s been no major change in the business’ prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although analyst forecasts do imply revenues expected to perform worse than the wider market. The consensus price target held steady at US$25.00, with the latest estimates not enough to have an impact on analysts’ estimated valuations.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for 1-800-FLOWERS.COM going out to 2021, and you can see them free on our platform here..
You can also view our analysis of 1-800-FLOWERS.COM’s balance sheet, and whether we think 1-800-FLOWERS.COM is carrying too much debt, for free on our platform here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.