Yahoo Finance CarParts.com, Inc. (NASDAQ:PRTS) Just Reported And Analysts Have Been Cutting Their Estimates
There's been a notable change in appetite for CarParts.com, Inc. (NASDAQ:PRTS) shares in the week since its quarterly report, with the stock down 12% to US$1.13. Revenues of US$166m were in line with expectations, although statutory losses per share were US$0.11, some 15% smaller than was expected. 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. 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 CarParts.com
Following the recent earnings report, the consensus from two analysts covering CarParts.com is for revenues of US$607.0m in 2024. This implies a not inconsiderable 8.9% decline in revenue compared to the last 12 months. Losses are forecast to balloon 40% to US$0.39 per share. Before this earnings announcement, the analysts had been modelling revenues of US$665.2m and losses of US$0.11 per share in 2024. So it's pretty clear the analysts have mixed opinions on CarParts.com after this update; revenues were downgraded and per-share losses expected to increase.
The average price target fell 43% to US$2.00, implicitly signalling that lower earnings per share are a leading indicator for CarParts.com's valuation.
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 revenue is expected to reverse, with a forecast 12% annualised decline to the end of 2024. That is a notable change from historical growth of 19% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.9% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - CarParts.com is expected to lag 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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for CarParts.com going out as far as 2025, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for CarParts.com that you need to take into consideration.
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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.
