It’s been a sad week for Warby Parker Inc. (NYSE:WRBY), who’ve watched their investment drop 13% to US$13.16 in the week since the company reported its quarterly result. The statutory results were not great – while revenues of US$188m were in line with expectations,Warby Parker lost US$0.06 a share in the process. This is an important time for investors, as they can track a company’s performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we’ve gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for Warby Parker
Following the latest results, Warby Parker’s 14 analysts are now forecasting revenues of US$761.3m in 2024. This would be a satisfactory 5.7% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 64% to US$0.14. Before this earnings announcement, the analysts had been modelling revenues of US$760.1m and losses of US$0.13 per share in 2024. So it’s pretty clear consensus is mixed on Warby Parker after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a modest increase to per-share loss expectations.
As a result, there was no major change to the consensus price target of US$16.58, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. 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. Currently, the most bullish analyst values Warby Parker at US$19.00 per share, while the most bearish prices it at US$14.00. 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.
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. We can infer from the latest estimates that forecasts expect a continuation of Warby Parker’shistorical trends, as the 12% annualised revenue growth to the end of 2024 is roughly in line with the 12% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 4.8% per year. So although Warby Parker is expected to maintain its revenue growth rate, it’s definitely expected 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it’s tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
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 Warby Parker going out to 2026, and you can see them free on our platform here.
Even so, be aware that Warby Parker is showing 2 warning signs in our investment analysis , 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.