Yahoo Finance Unifi, Inc. (NYSE:UFI) Just Reported, And Analysts Assigned A US$12.00 Price Target
Shareholders of Unifi, Inc. (NYSE:UFI) will be pleased this week, given that the stock price is up 11% to US$6.14 following its latest third-quarter results. Revenues were in line with expectations, at US$149m, while statutory losses ballooned to US$0.57 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Unifi
Taking into account the latest results, the current consensus from Unifi's solitary analyst is for revenues of US$687.8m in 2025. This would reflect a meaningful 19% increase on its revenue over the past 12 months. Earnings are expected to improve, with Unifi forecast to report a statutory profit of US$0.30 per share. Before this earnings report, the analyst had been forecasting revenues of US$699.4m and earnings per share (EPS) of US$0.64 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.
The average price target fell 14% to US$12.00, with reduced earnings forecasts clearly tied to a lower valuation estimate.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Unifi's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Unifi is forecast to grow faster in the future than it has in the past, with revenues expected to display 15% annualised growth until the end of 2025. If achieved, this would be a much better result than the 1.0% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 6.0% annually. So it looks like Unifi is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Unifi. 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 fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Unifi's future valuation.
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 analyst estimates for Unifi going out as far as 2026, and you can see them free on our platform here.
You can also see whether Unifi is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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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.
