Earnings Release: Here's Why Analysts Cut Their Stryve Foods, Inc. (NASDAQ:SNAX) Price Target To US$2.67

Stryve Foods, Inc. (NASDAQ:SNAX) defied analyst predictions to release its quarterly results, which were ahead of market expectations. Results overall were solid, with revenues arriving 5.0% better than analyst forecasts at US$7.4m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.25 per share, were 5.0% smaller than the analysts expected. 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 Stryve Foods

Taking into account the latest results, the current consensus from Stryve Foods' three analysts is for revenues of US$43.3m in 2022, which would reflect a substantial 41% increase on its sales over the past 12 months. Losses are forecast to balloon 23% to US$1.69 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$43.2m and losses of US$1.69 per share in 2022.

The analysts trimmed their valuations, with the average price target falling 11% to US$2.67, with the ongoing losses seemingly weighing on sentiment, despite no real changes to the earnings forecasts. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Stryve Foods, with the most bullish analyst valuing it at US$3.00 and the most bearish at US$2.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. The period to the end of 2022 brings more of the same, according to the analysts, with revenue forecast to display 59% growth on an annualised basis. That is in line with its 57% annual growth over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 2.7% per year. So although Stryve Foods is expected to maintain its revenue growth rate, it's definitely expected to grow faster 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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 Simply Wall St, we have a full range of analyst estimates for Stryve Foods going out to 2023, and you can see them free on our platform here..

You still need to take note of risks, for example - Stryve Foods has 4 warning signs (and 1 which is concerning) we think 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.