Earnings Beat: Wolverine World Wide, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

As you might know, Wolverine World Wide, Inc. (NYSE:WWW) just kicked off its latest quarterly results with some very strong numbers. The company beat forecasts, with revenue of US$425m, some 3.5% above estimates, and statutory earnings per share (EPS) coming in at US$0.17, 124% ahead of expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Wolverine World Wide

Taking into account the latest results, the current consensus, from the seven analysts covering Wolverine World Wide, is for revenues of US$1.73b in 2024. This implies a noticeable 7.9% reduction in Wolverine World Wide's revenue over the past 12 months. Wolverine World Wide is also expected to turn profitable, with statutory earnings of US$0.72 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.72b and earnings per share (EPS) of US$0.72 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The consensus price target rose 7.8% to US$17.25despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Wolverine World Wide's earnings by assigning a price premium. 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. Currently, the most bullish analyst values Wolverine World Wide at US$20.00 per share, while the most bearish prices it at US$14.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Wolverine World Wide shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Wolverine World Wide's past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 15% by the end of 2024. This indicates a significant reduction from annual growth of 2.3% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.8% annually for the foreseeable future. It's pretty clear that Wolverine World Wide's revenues are expected to perform substantially worse than 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Wolverine World Wide's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Wolverine World Wide going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 2 warning signs for Wolverine World Wide (of which 1 makes us a bit uncomfortable!) you should know about.

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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.