Beyond, Inc. (NYSE:BYON) Analysts Are Cutting Their Estimates: Here's What You Need To Know

One of the biggest stories of last week was how Beyond, Inc. (NYSE:BYON) shares plunged 20% in the week since its latest quarterly results, closing yesterday at US$16.33. It was a pretty bad result overall; while revenues were in line with expectations at US$382m, statutory losses exploded to US$1.58 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Beyond after the latest results.

See our latest analysis for Beyond

Taking into account the latest results, the consensus forecast from Beyond's ten analysts is for revenues of US$1.71b in 2024. This reflects a notable 9.6% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 74% to US$2.11. Before this earnings announcement, the analysts had been modelling revenues of US$1.86b and losses of US$1.99 per share in 2024. Overall it looks as though the analysts are negative in this update. Although revenue forecasts held steady, the consensus also made a moderate increase in to its losses per share forecasts.

The average price target fell 12% to US$31.75, implicitly signalling that lower earnings per share are a leading indicator for Beyond's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Beyond, with the most bullish analyst valuing it at US$50.00 and the most bearish at US$17.00 per share. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Beyond's past performance and to peers in the same industry. It's clear from the latest estimates that Beyond's rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 0.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.9% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Beyond to grow faster 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster 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 Beyond's future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Beyond going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Beyond , and understanding this should be part of your investment process.

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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.