Yahoo Finance Need To Know: This Analyst Just Made A Substantial Cut To Their Johnson Outdoors Inc. (NASDAQ:JOUT) Estimates
One thing we could say about the covering analyst on Johnson Outdoors Inc. (NASDAQ:JOUT) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) estimates were cut sharply as the analyst factored in the latest outlook for the business, concluding that they were too optimistic previously.
After the downgrade, the consensus from Johnson Outdoors' single analyst is for revenues of US$607m in 2024, which would reflect a small 2.8% decline in sales compared to the last year of performance. Statutory earnings per share are forecast to be US$1.72, approximately in line with the last 12 months. Prior to this update, the analyst had been forecasting revenues of US$674m and earnings per share (EPS) of US$2.67 in 2024. Indeed, we can see that the analyst is a lot more bearish about Johnson Outdoors' prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.
View our latest analysis for Johnson Outdoors
It'll come as no surprise then, to learn that the analyst has cut their price target 12% to US$66.00.
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 sales are expected to reverse, with a forecast 3.7% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 6.8% 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 2.8% annually for the foreseeable future. It's pretty clear that Johnson Outdoors' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales 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 Johnson Outdoors.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2025, which can be seen 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.
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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.
