The Consensus EPS Estimates For Vera Bradley, Inc. (NASDAQ:VRA) Just Fell Dramatically

One thing we could say about the analysts on Vera Bradley, Inc. (NASDAQ:VRA) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the latest downgrade, the current consensus, from the two analysts covering Vera Bradley, is for revenues of US$410m in 2025, which would reflect a measurable 6.7% reduction in Vera Bradley's sales over the past 12 months. Statutory earnings per share are presumed to bounce 599% to US$0.21. Prior to this update, the analysts had been forecasting revenues of US$468m and earnings per share (EPS) of US$0.37 in 2025. Indeed, we can see that the analysts are a lot more bearish about Vera Bradley's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Vera Bradley

The consensus price target fell 32% to US$6.50, with the weaker earnings outlook clearly leading analyst valuation estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 13% by the end of 2025. This indicates a significant reduction from annual growth of 0.2% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.7% per year. It's pretty clear that Vera Bradley's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Vera Bradley. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Vera Bradley's revenues are expected to grow slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Vera Bradley.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Vera Bradley going out as far as 2026, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.