The ONE Group Hospitality, Inc. (NASDAQ:STKS) Third-Quarter Results: Here's What Analysts Are Forecasting For Next Year

The ONE Group Hospitality, Inc. (NASDAQ:STKS) just released its latest third-quarter report and things are not looking great. It was a pretty negative result overall, with revenues of US$180m missing analyst predictions by 5.7%. Worse, the business reported a statutory loss of US$2.75 per share, much larger than the analysts had forecast prior to the result. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following the latest results, ONE Group Hospitality's six analysts are now forecasting revenues of US$879.4m in 2026. This would be an okay 7.2% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 85% to US$0.49. Before this latest report, the consensus had been expecting revenues of US$880.5m and US$0.46 per share in losses. Overall it looks as though the analysts were a bit mixed on the latest consensus updates. Although revenue forecasts held steady, the consensus also made a pronounced increase to its losses per share forecasts.

View our latest analysis for ONE Group Hospitality

As a result, there was no major change to the consensus price target of US$5.05, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. 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. The most optimistic ONE Group Hospitality analyst has a price target of US$6.00 per share, while the most pessimistic values it at US$4.20. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that ONE Group Hospitality's revenue growth is expected to slow, with the forecast 5.7% annualised growth rate until the end of 2026 being well below the historical 32% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 10% per year. Factoring in the forecast slowdown in growth, it seems obvious that ONE Group Hospitality is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at ONE Group Hospitality. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$5.05, with the latest estimates not enough to have an impact on their price targets.

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 ONE Group Hospitality going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - ONE Group Hospitality has 4 warning signs 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.