Analyst Estimates: Here's What Brokers Think Of Lifetime Brands, Inc. (NASDAQ:LCUT) After Its First-Quarter Report

Shareholders of Lifetime Brands, Inc. (NASDAQ:LCUT) will be pleased this week, given that the stock price is up 13% to US$10.61 following its latest first-quarter results. Revenues were in line with expectations, at US$142m, while statutory losses ballooned to US$0.29 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Lifetime Brands

Taking into account the latest results, the consensus forecast from Lifetime Brands' three analysts is for revenues of US$705.3m in 2024. This reflects a credible 3.2% improvement in revenue compared to the last 12 months. Lifetime Brands is also expected to turn profitable, with statutory earnings of US$0.40 per share. Before this earnings report, the analysts had been forecasting revenues of US$692.5m and earnings per share (EPS) of US$0.63 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.

The consensus price target held steady at US$12.83, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Lifetime Brands analyst has a price target of US$15.00 per share, while the most pessimistic values it at US$11.50. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Lifetime Brands is an easy business to forecast or the the analysts are all using similar 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. One thing stands out from these estimates, which is that Lifetime Brands is forecast to grow faster in the future than it has in the past, with revenues expected to display 4.3% annualised growth until the end of 2024. If achieved, this would be a much better result than the 1.1% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 5.5% annually for the foreseeable future. So although Lifetime Brands' revenue growth is expected to improve, it is still expected to grow slower than the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Lifetime Brands. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$12.83, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Lifetime Brands. Long-term earnings power is much more important than next year's profits. We have forecasts for Lifetime Brands going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Lifetime Brands (1 makes us a bit uncomfortable!) that we have uncovered.

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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.