Bath & Body Works, Inc. Just Beat EPS By 23%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that Bath & Body Works, Inc. (NYSE:BBWI) filed its first-quarter result this time last week. The early response was not positive, with shares down 8.6% to US$46.37 in the past week. It looks like a credible result overall - although revenues of US$1.4b were what the analysts expected, Bath & Body Works surprised by delivering a (statutory) profit of US$0.38 per share, an impressive 23% above what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Bath & Body Works

Taking into account the latest results, Bath & Body Works' 19 analysts currently expect revenues in 2025 to be US$7.40b, approximately in line with the last 12 months. Statutory earnings per share are forecast to decline 18% to US$3.24 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$7.40b and earnings per share (EPS) of US$3.25 in 2025. 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.

The analysts reconfirmed their price target of US$53.11, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on Bath & Body Works, with the most bullish analyst valuing it at US$70.00 and the most bearish at US$42.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bath & Body Works' past performance and to peers in the same industry. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2025 compared to the historical decline of 11% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 4.7% per year. So while a broad number of companies are forecast to grow, unfortunately Bath & Body Works is expected to see its revenue affected worse than other companies in 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$53.11, with the latest estimates not enough to have an impact on their price targets.

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 forecasts for Bath & Body Works going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for Bath & Body Works (of which 1 is a bit unpleasant!) 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.