Build-A-Bear Workshop, Inc. (NYSE:BBW) just released its latest third-quarter results and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 5.3% to hit US$119m. Statutory earnings per share (EPS) came in at US$0.73, some 5.0% above whatthe analysts had expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Taking into account the latest results, the consensus forecast from Build-A-Bear Workshop's three analysts is for revenues of US$506.3m in 2026. This reflects a satisfactory 2.2% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$3.93, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$506.1m and earnings per share (EPS) of US$3.93 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The consensus price target rose 37% to US$54.33despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Build-A-Bear Workshop's earnings by assigning a price premium. 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. The most optimistic Build-A-Bear Workshop analyst has a price target of US$58.00 per share, while the most pessimistic values it at US$50.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Build-A-Bear Workshop is an easy business to forecast or the the analysts are all using similar assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Build-A-Bear Workshop's revenue growth is expected to slow, with the forecast 1.8% annualised growth rate until the end of 2026 being well below the historical 12% 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 4.7% per year. Factoring in the forecast slowdown in growth, it seems obvious that Build-A-Bear Workshop is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Build-A-Bear Workshop's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Build-A-Bear Workshop. Long-term earnings power is much more important than next year's profits. We have forecasts for Build-A-Bear Workshop going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Build-A-Bear Workshop that you should be aware of.

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