Bubs Australia Limited (ASX:BUB) Just Reported Annual Earnings And Analysts Are Lifting Their Estimates

Bubs Australia Limited (ASX:BUB) missed earnings with its latest yearly results, disappointing overly-optimistic forecasters. It was a pretty negative result overall, with revenues of AU$80m missing analyst predictions by 3.1%. Worse, the business reported a statutory loss of AU$0.03 per share, much larger than the analysts had forecast prior to the result. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Bubs Australia

Taking into account the latest results, the consensus forecast from Bubs Australia's three analysts is for revenues of AU$101.5m in 2025. This reflects a major 27% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 91% to AU$0.002. Yet prior to the latest earnings, the analysts had been forecasting revenues of AU$95.0m and losses of AU$0.002 per share in 2025.

The consensus price target held steady at AU$0.11despite the upgrade to revenue forecasts and ongoing losses. The analysts seems to think the business is otherwise performing roughly in line with expectations. 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. There are some variant perceptions on Bubs Australia, with the most bullish analyst valuing it at AU$0.15 and the most bearish at AU$0.06 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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 Bubs Australia's rate of growth is expected to accelerate meaningfully, with the forecast 27% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 12% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.7% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Bubs Australia is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 Bubs Australia going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Bubs Australia has 3 warning signs we think you should be aware of.

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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.