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

Katapult Holdings, Inc. (NASDAQ:KPLT) shareholders are probably feeling a little disappointed, since its shares fell 4.5% to US$14.13 in the week after its latest full-year results. It was a pretty bad result overall; while revenues were in line with expectations at US$222m, statutory losses exploded to US$9.06 per share. 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$243.7m in 2024. If met, it would imply a meaningful 9.7% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 44% to US$5.08. Before this latest report, the consensus had been expecting revenues of US$247.9m and US$5.12 per share in losses.

As a result, it's unexpected to see that the consensus price target fell 5.9% to US$16.00, with the analysts seemingly becoming more concerned about ongoing losses, despite making no major changes to their forecasts.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 9.7% growth on an annualised basis. That is in line with its 10% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 12% annually. So although Katapult Holdings is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

It is also worth noting that we have found 6 warning signs for Katapult Holdings (2 don't sit too well with us!) that you need to take into consideration.

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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.