Yahoo Finance PLBY Group, Inc. (NASDAQ:PLBY) Analysts Just Cut Their EPS Forecasts Substantially
The latest analyst coverage could presage a bad day for PLBY Group, Inc. (NASDAQ:PLBY), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.
Following the latest downgrade, the current consensus, from the six analysts covering PLBY Group, is for revenues of US$150m in 2023, which would reflect a sizeable 38% reduction in PLBY Group's sales over the past 12 months. Losses are predicted to fall substantially, shrinking 56% to US$2.68 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$200m and losses of US$0.90 per share in 2023. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.
View our latest analysis for PLBY Group
The consensus price target fell 7.2% to US$3.23, implicitly signalling that lower earnings per share are a leading indicator for PLBY Group's valuation.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 62% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 26% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 7.7% annually for the foreseeable future. It's pretty clear that PLBY Group's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that analysts increased their loss per share estimates for this year. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that PLBY Group's revenues are expected to grow slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of PLBY Group.
There might be good reason for analyst bearishness towards PLBY Group, like major dilution from new stock issuance in the past year. Learn more, and discover the 3 other warning signs we've identified, for free on our platform here.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
