Some Stryve Foods, Inc. (NASDAQ:SNAX) Analysts Just Made A Major Cut To Next Year's Estimates

The latest analyst coverage could presage a bad day for Stryve Foods, Inc. (NASDAQ:SNAX), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

Following the downgrade, the latest consensus from Stryve Foods' twin analysts is for revenues of US$43m in 2022, which would reflect a sizeable 44% improvement in sales compared to the last 12 months. Losses are supposed to balloon 28% to US$1.69 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$48m and losses of US$1.17 per share in 2022. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.

Check out our latest analysis for Stryve Foods

The consensus price target fell 25% to US$3.00, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. 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. Currently, the most bullish analyst values Stryve Foods at US$4.00 per share, while the most bearish prices it at US$2.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. It's pretty clear that there is an expectation that Stryve Foods' revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 44% growth on an annualised basis. This is compared to a historical growth rate of 77% over the past year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.8% annually. So it's pretty clear that, while Stryve Foods' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that analysts increased their loss per share estimates for this year. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Stryve Foods.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Stryve Foods going out as far as 2023, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.