Snap One Holdings Corp. (NASDAQ:SNPO) Annual Results Just Came Out: Here's What Analysts Are Forecasting For This Year

It's been a mediocre week for Snap One Holdings Corp. (NASDAQ:SNPO) shareholders, with the stock dropping 10% to US$16.58 in the week since its latest yearly results. Revenues were in line with expectations, at US$1.0b, while statutory losses ballooned to US$0.56 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Snap One Holdings

Taking into account the latest results, the most recent consensus for Snap One Holdings from nine analysts is for revenues of US$1.10b in 2022 which, if met, would be a meaningful 9.3% increase on its sales over the past 12 months. Snap One Holdings is also expected to turn profitable, with statutory earnings of US$0.27 per share. Before this earnings report, the analysts had been forecasting revenues of US$1.10b and earnings per share (EPS) of US$0.27 in 2022. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$23.63, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on Snap One Holdings, with the most bullish analyst valuing it at US$30.00 and the most bearish at US$21.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Snap One Holdings' revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 9.3% growth on an annualised basis. This is compared to a historical growth rate of 23% over the past year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.0% annually. Factoring in the forecast slowdown in growth, it looks like Snap One Holdings is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to sales forecasts, with the business still expected to grow in line with the overall 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. At Simply Wall St, we have a full range of analyst estimates for Snap One Holdings going out to 2024, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Snap One Holdings that you need to be mindful 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.