Sportsman's Warehouse Holdings, Inc. (NASDAQ:SPWH) Just Reported, And Analysts Assigned A US$3.10 Price Target

Shareholders of Sportsman's Warehouse Holdings, Inc. (NASDAQ:SPWH) will be pleased this week, given that the stock price is up 14% to US$2.39 following its latest second-quarter results. Revenues were in line with expectations, at US$289m, while statutory losses ballooned to US$0.16 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Sportsman's Warehouse Holdings

Taking into account the latest results, the five analysts covering Sportsman's Warehouse Holdings provided consensus estimates of US$1.15b revenue in 2025, which would reflect a small 7.2% decline over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 31% to US$0.63. Before this latest report, the consensus had been expecting revenues of US$1.18b and US$0.29 per share in losses. While this year's revenue estimates held steady, there was also a sizeable expansion in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 30% to US$3.10, with the analysts signalling that growing losses would be a definite concern. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Sportsman's Warehouse Holdings at US$5.00 per share, while the most bearish prices it at US$2.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 14% annualised decline to the end of 2025. That is a notable change from historical growth of 5.6% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.8% annually for the foreseeable future. It's pretty clear that Sportsman's Warehouse Holdings' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Sportsman's Warehouse Holdings' revenue is expected to perform worse 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 Sportsman's Warehouse Holdings' future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Sportsman's Warehouse Holdings analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that Sportsman's Warehouse Holdings is showing 2 warning signs in our investment analysis , you should know about...

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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.