Yahoo Finance New Age Beverages Corporation Analysts Are Cutting Their Estimates: Here's What You Need To Know
Earnings Update: New Age Beverages Corporation (NASDAQ:NBEV) Just Reported Its Full-Year Results And Analysts Are Updating Their Forecasts
As you might know, New Age Beverages Corporation (NASDAQ:NBEV) last week released its latest full-year, and things did not turn out so great for shareholders. It was a pretty negative result overall, with revenues of US$254m missing analyst predictions by 2.7%. Worse, the business reported a statutory loss of US$1.16 per share, much larger than the analysts had forecast prior to the result. 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.
View our latest analysis for New Age Beverages
Taking into account the latest results, New Age Beverages's three analysts currently expect revenues in 2020 to be US$256.7m, approximately in line with the last 12 months. Losses are predicted to fall substantially, shrinking 67% to US$0.38. Before this earnings announcement, the analysts had been modelling revenues of US$261.0m and losses of US$0.47 per share in 2020. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading revenues and making a nice increase in losses per share in particular.
There's been no major changes to the consensus price target of US$5.25, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. 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. The most optimistic New Age Beverages analyst has a price target of US$7.00 per share, while the most pessimistic values it at US$3.50. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the 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. We would highlight that New Age Beverages's revenue growth is expected to slow, with forecast 1.2% increase next year well below the historical 67%p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.8% next year. Factoring in the forecast slowdown in growth, it seems obvious that New Age Beverages is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. The consensus price target held steady at US$5.25, 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 estimates - from multiple New Age Beverages analysts - going out to 2021, and you can see them free on our platform here.
It is also worth noting that we have found 3 warning signs for New Age Beverages (1 makes us a bit uncomfortable!) that you need to take into consideration.
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