These Analysts Just Made A Massive Downgrade To Their Brilliant Earth Group, Inc. (NASDAQ:BRLT) EPS Forecasts

Today is shaping up negative for Brilliant Earth Group, Inc. (NASDAQ:BRLT) shareholders, with the analysts delivering a substantial negative revision to next year's forecasts. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the latest consensus from Brilliant Earth Group's eight analysts is for revenues of US$483m in 2024, which would reflect a meaningful 9.3% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 34% to US$0.12. Before this latest update, the analysts had been forecasting revenues of US$552m and earnings per share (EPS) of US$0.20 in 2024. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a pretty serious decline to earnings per share numbers as well.

See our latest analysis for Brilliant Earth Group

It'll come as no surprise then, to learn that the analysts have cut their price target 29% to US$4.54.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Brilliant Earth Group's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 7.3% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.7% per year. So it's pretty clear that, while Brilliant Earth Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Brilliant Earth Group. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. With a serious cut to next year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Brilliant Earth Group.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Brilliant Earth Group analysts - going out to 2025, and you can see them free on our platform here.

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