PLBY Group, Inc. (NASDAQ:PLBY) Just Reported Earnings, And Analysts Cut Their Target Price

PLBY Group, Inc. (NASDAQ:PLBY) shareholders are probably feeling a little disappointed, since its shares fell 4.4% to US$25.31 in the week after its latest quarterly results. The results don't look great, especially considering that statutory losses grew 1,614% toUS$0.24 per share. Revenues of US$50m did beat expectations by 6.3%, but it looks like a bit of a cold comfort. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for PLBY Group

Taking into account the latest results, the most recent consensus for PLBY Group from five analysts is for revenues of US$233.9m in 2021 which, if met, would be a sizeable 35% increase on its sales over the past 12 months. Statutory losses are forecast to balloon 84% to US$0.22 per share. Before this earnings report, the analysts had been forecasting revenues of US$222.9m and earnings per share (EPS) of US$0.058 in 2021. While they've upgraded their revenue numbers for next year, the consensus also expects losses to increase, perhaps due to the investments required to grow revenue. In any event, it's not clear that these new estimates are particularly bullish.

It will come as no surprise that expanding losses caused the consensus price target to fall 6.7% to US$47.60with the analysts implicitly ranking ongoing losses as a greater concern than growing revenues. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic PLBY Group analyst has a price target of US$50.00 per share, while the most pessimistic values it at US$45.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting PLBY Group's growth to accelerate, with the forecast 81% annualised growth to the end of 2021 ranking favourably alongside historical growth of 63% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.8% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that PLBY Group is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts are expecting PLBY Group to become unprofitable next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of PLBY Group's future valuation.

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. We have forecasts for PLBY Group going out to 2023, and you can see them free on our platform here.

You still need to take note of risks, for example - PLBY Group has 1 warning sign 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.
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