Earnings Release: Here's Why Analysts Cut Their PSQ Holdings, Inc. (NYSE:PSQH) Price Target To US$3.50

It's been a sad week for PSQ Holdings, Inc. (NYSE:PSQH), who've watched their investment drop 16% to US$2.46 in the week since the company reported its third-quarter result. PSQ Holdings reported revenues of US$6.5m, in line with expectations, but it unfortunately also reported (statutory) losses of US$0.41 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 expert is forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

See our latest analysis for PSQ Holdings

After the latest results, the one analyst covering PSQ Holdings are now predicting revenues of US$36.7m in 2025. If met, this would reflect a sizeable 96% improvement in revenue compared to the last 12 months. Losses are supposed to decline, shrinking 10% from last year to US$1.17. Before this latest report, the consensus had been expecting revenues of US$36.0m and US$1.49 per share in losses. Although the revenue estimate has not really changed PSQ Holdings'future looks a little different to the past, with a considerable decrease in the loss per share forecasts in particular.

The consensus price target fell 30% to US$3.50despite the forecast for smaller losses next year. It looks like the ongoing lack of profitability is starting to weigh on valuations.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that PSQ Holdings' revenue growth is expected to slow, with the forecast 71% annualised growth rate until the end of 2025 being well below the historical 113% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% annually. Even after the forecast slowdown in growth, it seems obvious that PSQ Holdings is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analyst made no changes to their forecasts for a loss next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of PSQ Holdings' future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on PSQ Holdings. Long-term earnings power is much more important than next year's profits. We have analyst estimates for PSQ Holdings going out as far as 2025, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for PSQ Holdings that we have uncovered.

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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.