BRC Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

There's been a notable change in appetite for BRC Inc. (NYSE:BRCC) shares in the week since its yearly report, with the stock down 14% to US$2.15. Revenues came in at US$391m, in line with estimates, while BRC reported a statutory loss of US$0.04 per share, well short of prior analyst forecasts for a profit. 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.

View our latest analysis for BRC

Taking into account the latest results, the consensus forecast from BRC's six analysts is for revenues of US$407.2m in 2025. This reflects a reasonable 4.0% improvement in revenue compared to the last 12 months. Statutory losses are forecast to balloon 20% to US$0.03 per share. In the lead-up to this report, the analysts had been modelling revenues of US$412.6m and earnings per share (EPS) of US$0.0075 in 2025. So despite reconfirming their revenue estimates, the analysts are now forecasting a loss instead of a profit, which looks like a definite drop in sentiment following the latest results.

The consensus price target fell 34% to US$3.17per share, with the analysts clearly concerned by ballooning losses. 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 BRC, with the most bullish analyst valuing it at US$4.00 and the most bearish at US$2.50 per share. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the BRC's past performance and to peers in the same industry. We would highlight that BRC's revenue growth is expected to slow, with the forecast 4.0% annualised growth rate until the end of 2025 being well below the historical 24% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.2% annually. So it's pretty clear that, while BRC's 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 the analysts are expecting BRC to become unprofitable next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of BRC's future valuation.

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 BRC going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for BRC (1 doesn'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.