Last week saw the newest second-quarter earnings release from Grove Collaborative Holdings, Inc. (NYSE:GROV), an important milestone in the company's journey to build a stronger business. Revenues were in line with expectations, at US$52m, while statutory losses ballooned to US$0.28 per share. 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.
NYSE:GROV Earnings and Revenue Growth August 17th 2024
Following the recent earnings report, the consensus from dual analysts covering Grove Collaborative Holdings is for revenues of US$211.0m in 2024. This implies a perceptible 7.2% decline in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 21% to US$0.69. Before this latest report, the consensus had been expecting revenues of US$219.9m and US$0.55 per share in losses. So it's pretty clear the analysts have mixed opinions on Grove Collaborative Holdings after this update; revenues were downgraded and per-share losses expected to increase.
The consensus price target fell 17% to US$2.50, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would also point out that the forecast 14% annualised revenue decline to the end of 2024 is better than the historical trend, which saw revenues shrink 20% annually over the past three years Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 4.8% annually. So while a broad number of companies are forecast to grow, unfortunately Grove Collaborative Holdings is expected to see its revenue affected worse than other companies in the industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Grove Collaborative Holdings. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Grove Collaborative Holdings' future valuation.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.
However, before you get too enthused, we've discovered 3 warning signs for Grove Collaborative Holdings that you should be aware of.
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先週、Grove Collaborative Holdings, Inc. (NYSE:GROV)から新しい第2四半期の決算発表がありました。これは同社がより強いビジネスを築くための重要なマイルストーンです。売上高は予想通りの5200万ドルで、法定損失は1株あたり0.28ドルに膨らみました。アナリストは通常、各決算報告ごとに予測を更新し、その予測から同社に対する見方が変わったか、新たな懸念事項があるかを判断することができます。これを踏まえて、我々は最新の法定予測を集め、アナリストが来年に何を予想しているのかを見てみました。
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オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。