As you might know, 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS) just kicked off its latest quarterly results with some very strong numbers. Revenues and losses per share both beat expectations, with revenues of US$279m leading estimates by 5.5%. Statutory losses were somewhat smaller thanthe analysts expected, coming in at US$0.15 per share. 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. Readers will be glad to know we’ve aggregated the latest statutory forecasts to see whether the analysts have changed their mind on 1-800-FLOWERS.COM after the latest results.
Taking into account the latest results, the most recent consensus for 1-800-FLOWERS.COM from six analysts is for revenues of US$1.41b in 2021 which, if met, would be a credible 5.6% increase on its sales over the past 12 months. Statutory per-share earnings are expected to be US$0.65, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$1.38b and earnings per share (EPS) of US$0.60 in 2021. It looks like there’s been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
With these upgrades, we’re not surprised to see that the analysts have lifted their price target 9.4% to US$23.17 per share. That’s not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic 1-800-FLOWERS.COM analyst has a price target of US$26.00 per share, while the most pessimistic values it at US$17.00. 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.
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. It’s clear from the latest estimates that 1-800-FLOWERS.COM’s rate of growth is expected to accelerate meaningfully, with the forecast 5.6% revenue growth noticeably faster than its historical growth of 2.5%p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 16% next year. It seems obvious that, while the future growth outlook is brighter than the recent past, 1-800-FLOWERS.COM is expected to grow slower than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards 1-800-FLOWERS.COM following these results. They also upgraded their revenue estimates for next year, even though sales are expected to grow slower than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that in mind, we wouldn’t be too quick to come to a conclusion on 1-800-FLOWERS.COM. Long-term earnings power is much more important than next year’s profits. We have forecasts for 1-800-FLOWERS.COM going out to 2022, and you can see them free on our platform here.
You still need to take note of risks, for example – 1-800-FLOWERS.COM has 1 warning sign we think you should be aware of.
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