Here's What Analysts Are Forecasting For High Tide Inc. (CVE:HITI) After Its Second-Quarter Results

High Tide Inc. (CVE:HITI) shareholders are probably feeling a little disappointed, since its shares fell 2.3% to CA$3.39 in the week after its latest quarterly results. High Tide's revenues suffered a miss, falling 2.5% short of forecasts, at CA$124m. Statutory earnings per share (EPS) however performed much better, reaching break-even. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for High Tide

Taking into account the latest results, the current consensus from High Tide's four analysts is for revenues of CA$523.2m in 2024. This would reflect a reasonable 3.8% increase on its revenue over the past 12 months. Before this latest report, the consensus had been expecting revenues of CA$531.1m and CA$0.18 per share in losses. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

We'd also point out that thatthe analysts have made no major changes to their price target of CA$6.00. 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 High Tide, with the most bullish analyst valuing it at CA$6.00 and the most bearish at CA$4.50 per share. This is a very narrow spread of estimates, implying either that High Tide is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. We would highlight that High Tide's revenue growth is expected to slow, with the forecast 7.8% annualised growth rate until the end of 2024 being well below the historical 49% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 10% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than High Tide.

The Bottom Line

The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that High Tide's revenue is expected to perform worse 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.

We have estimates for High Tide from its four analysts out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for High Tide 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.

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