US$13.88 - That's What Analysts Think a.k.a. Brands Holding Corp. (NYSE:AKA) Is Worth After These Results

Shareholders of a.k.a. Brands Holding Corp. (NYSE:AKA) will be pleased this week, given that the stock price is up 11% to US$23.57 following its latest quarterly results. Revenue of US$117m came in 4.9% ahead of expectations, although statutory earnings didn't fare nearly so well, recording a loss of US$0.85, a 16% miss. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on a.k.a. Brands Holding after the latest results.

View our latest analysis for a.k.a. Brands Holding

Following last week's earnings report, a.k.a. Brands Holding's five analysts are forecasting 2024 revenues to be US$550.3m, approximately in line with the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 82% to US$1.69. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$547.3m and losses of US$1.49 per share in 2024. So it's pretty clear the analysts have mixed opinions on a.k.a. Brands Holding even after this update; although they reconfirmed their revenue numbers, it came at the cost of a noticeable increase in per-share losses.

Despite expectations of heavier losses next year,the analysts have lifted their price target 25% to US$13.88, perhaps implying these losses are not expected to be recurring over the long term. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on a.k.a. Brands Holding, with the most bullish analyst valuing it at US$22.00 and the most bearish at US$9.50 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that a.k.a. Brands Holding's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 1.9% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.9% annually. Factoring in the forecast slowdown in growth, it seems obvious that a.k.a. Brands Holding is also expected to grow slower than other industry participants.

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 a.k.a. Brands Holding's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple a.k.a. Brands Holding analysts - going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for a.k.a. Brands Holding (1 is a bit unpleasant!) that you should be aware of.

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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.