Yahoo Finance Here's What Analysts Are Forecasting For Five Below, Inc. (NASDAQ:FIVE) After Its Annual Results
It's been a mediocre week for Five Below, Inc. (NASDAQ:FIVE) shareholders, with the stock dropping 15% to US$171 in the week since its latest yearly results. Revenues of US$3.6b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$5.41, missing estimates by 2.1%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for Five Below
Taking into account the latest results, the consensus forecast from Five Below's 21 analysts is for revenues of US$4.05b in 2025. This reflects a solid 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 11% to US$6.03. In the lead-up to this report, the analysts had been modelling revenues of US$4.11b and earnings per share (EPS) of US$6.46 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
The consensus price target held steady at US$213, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. Currently, the most bullish analyst values Five Below at US$245 per share, while the most bearish prices it at US$180. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Five Below shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Five Below's revenue growth is expected to slow, with the forecast 14% annualised growth rate until the end of 2025 being well below the historical 17% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.0% annually. Even after the forecast slowdown in growth, it seems obvious that Five Below is also expected to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Five Below. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$213, 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 Five Below analysts - going out to 2027, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for Five Below you should be aware of.
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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.
