Earnings Beat: Amer Sports, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Amer Sports, Inc. (NYSE:AS) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of US$1.4b arriving 4.1% ahead of forecasts. Statutory earnings per share (EPS) were US$0.11, 9.6% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Amer Sports

Taking into account the latest results, the consensus forecast from Amer Sports' 19 analysts is for revenues of US$5.82b in 2025. This reflects a huge 20% improvement in revenue compared to the last 12 months. Amer Sports is also expected to turn profitable, with statutory earnings of US$0.65 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$5.75b and earnings per share (EPS) of US$0.68 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

Despite cutting their earnings forecasts,the analysts have lifted their price target 13% to US$23.32, suggesting that these impacts are not expected to weigh on the stock's value in the long term. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Amer Sports, with the most bullish analyst valuing it at US$27.00 and the most bearish at US$19.00 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Amer Sports'historical trends, as the 16% annualised revenue growth to the end of 2025 is roughly in line with the 16% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.1% per year. So it's pretty clear that Amer Sports is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Amer Sports. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Amer Sports. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Amer Sports going out to 2026, and you can see them free on our platform here..

You can also see whether Amer Sports is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.