Analysts Have Been Trimming Their Katapult Holdings, Inc. (NASDAQ:KPLT) Price Target After Its Latest Report

One of the biggest stories of last week was how Katapult Holdings, Inc. (NASDAQ:KPLT) shares plunged 30% in the week since its latest full-year results, closing yesterday at US$0.71. Katapult Holdings reported revenues of US$212m, in line with expectations, but it unfortunately also reported (statutory) losses of US$0.39 per share, which were slightly larger than expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Katapult Holdings

Taking into account the latest results, the most recent consensus for Katapult Holdings from two analysts is for revenues of US$222.9m in 2023 which, if met, would be an okay 5.1% increase on its sales over the past 12 months. The loss per share is expected to ameliorate slightly, reducing to US$0.37. Before this latest report, the consensus had been expecting revenues of US$201.9m and US$0.16 per share in losses. Ergo, there's been a clear change in sentiment, with the analysts lifting this year's revenue estimates, while at the same time increasing their loss per share numbers to reflect the cost of achieving this growth.

It will come as no surprise that expanding losses caused the consensus price target to fall 40% to US$1.50with the analysts implicitly ranking ongoing losses as a greater concern than growing revenues.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Katapult Holdings' revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 5.1% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past three 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 Katapult Holdings is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. They also upgraded their revenue estimates for next year, even though sales are expected to grow slower than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Katapult Holdings (including 1 which is concerning) .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.