Arhaus, Inc. Just Recorded A 10.0% EPS Beat: Here's What Analysts Are Forecasting Next

Arhaus, Inc. (NASDAQ:ARHS) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Arhaus reported US$345m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$0.09 beat expectations, being 10.0% higher than what 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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After the latest results, the 14 analysts covering Arhaus are now predicting revenues of US$1.45b in 2026. If met, this would reflect a reasonable 6.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to reduce 5.6% to US$0.49 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$1.45b and earnings per share (EPS) of US$0.50 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Arhaus

With no major changes to earnings forecasts, the consensus price target fell 6.4% to US$11.31, suggesting that the analysts might have previously been hoping for an earnings upgrade. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Arhaus at US$14.00 per share, while the most bearish prices it at US$9.50. 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.

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. It's pretty clear that there is an expectation that Arhaus' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 5.2% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.0% annually. So it's pretty clear that, while Arhaus' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 in mind, we wouldn't be too quick to come to a conclusion on Arhaus. Long-term earnings power is much more important than next year's profits. We have forecasts for Arhaus going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Arhaus Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.