Yahoo Finance These Analysts Just Made An Incredible Downgrade To Their Blue Apron Holdings, Inc. (NYSE:APRN) EPS Forecasts
One thing we could say about the analysts on Blue Apron Holdings, Inc. (NYSE:APRN) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.
Following the downgrade, the most recent consensus for Blue Apron Holdings from its four analysts is for revenues of US$501m in 2023 which, if met, would be a meaningful 9.2% increase on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 52% to US$1.38. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$578m and losses of US$0.91 per share in 2023. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.
View our latest analysis for Blue Apron Holdings
The consensus price target fell 31% to US$6.00, implicitly signalling that lower earnings per share are a leading indicator for Blue Apron Holdings' valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Blue Apron Holdings analyst has a price target of US$8.00 per share, while the most pessimistic values it at US$4.00. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Blue Apron Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 7.3% growth to the end of 2023 on an annualised basis. That is well above its historical decline of 15% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 4.2% per year. Not only are Blue Apron Holdings' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most important thing to note from this downgrade is that the consensus increased its forecast losses next year, suggesting all may not be well at Blue Apron Holdings. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. With a serious cut to next year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Blue Apron Holdings.
As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Blue Apron Holdings' financials, such as dilutive stock issuance over the past year. For more information, you can click here to discover this and the 3 other flags we've identified.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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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.
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