Analyst Estimates: Here's What Brokers Think Of F45 Training Holdings Inc. (NYSE:FXLV) After Its Full-Year Report

It's been a mediocre week for F45 Training Holdings Inc. (NYSE:FXLV) shareholders, with the stock dropping 10% to US$12.85 in the week since its latest annual results. It was a pretty bad result overall; while revenues were in line with expectations at US$134m, statutory losses exploded to US$2.99 per share. 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 F45 Training Holdings

Taking into account the latest results, the current consensus from F45 Training Holdings' nine analysts is for revenues of US$266.0m in 2022, which would reflect a huge 98% increase on its sales over the past 12 months. F45 Training Holdings is also expected to turn profitable, with statutory earnings of US$0.76 per share. In the lead-up to this report, the analysts had been modelling revenues of US$264.6m and earnings per share (EPS) of US$0.70 in 2022. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at US$18.11, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic F45 Training Holdings analyst has a price target of US$25.00 per share, while the most pessimistic values it at US$15.00. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that F45 Training Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 98% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 16% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 17% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that F45 Training Holdings is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards F45 Training Holdings following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider 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.

With that in mind, we wouldn't be too quick to come to a conclusion on F45 Training Holdings. 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 F45 Training Holdings going out to 2024, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for F45 Training Holdings that 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.