Lifetime Brands, Inc. Reported A Surprise Loss, And Analysts Have Updated Their Forecasts

Shareholders might have noticed that Lifetime Brands, Inc. (NASDAQ:LCUT) filed its quarterly result this time last week. The early response was not positive, with shares down 9.7% to US$3.06 in the past week. It was a pretty negative result overall, with revenues of US$172m missing analyst predictions by 2.3%. Worse, the business reported a statutory loss of US$0.05 per share, a substantial decline on analyst expectations of a profit. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following last week's earnings report, Lifetime Brands' two analysts are forecasting 2026 revenues to be US$670.0m, approximately in line with the last 12 months. Lifetime Brands is also expected to turn profitable, with statutory earnings of US$0.04 per share. Before this earnings report, the analysts had been forecasting revenues of US$676.0m and earnings per share (EPS) of US$0.29 in 2026. 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.

Check out our latest analysis for Lifetime Brands

It might be a surprise to learn that the consensus price target fell 8.3% to US$5.50, with the analysts clearly linking lower forecast earnings to the performance of the stock price.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. From these estimates it looks as though the analysts expect the years of declining revenue to come to an end, given the flat forecast out to 2026. That would be a definite improvement, given that the past five years have seen revenue shrink 5.2% annually. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.9% annually. So it's pretty clear that, although revenues are improving, Lifetime Brands 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. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Before you take the next step you should know about the 2 warning signs for Lifetime Brands 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.