Investors in Kontoor Brands, Inc. (NYSE:KTB) had a good week, as its shares rose 6.2% to close at US$81.65 following the release of its third-quarter results. Kontoor Brands reported in line with analyst predictions, delivering revenues of US$670m and statutory earnings per share of US$1.26, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Kontoor Brands after the latest results.

View our latest analysis for Kontoor Brands

Taking into account the latest results, the most recent consensus for Kontoor Brands from six analysts is for revenues of US$2.68b in 2025. If met, it would imply a modest 3.9% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 17% to US$5.31. Before this earnings report, the analysts had been forecasting revenues of US$2.69b and earnings per share (EPS) of US$5.18 in 2025. So the consensus seems to have become somewhat more optimistic on Kontoor Brands' earnings potential following these results.

The consensus price target rose 10% to US$93.14, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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 Kontoor Brands at US$110 per share, while the most bearish prices it at US$59.00. 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 Kontoor Brands shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kontoor Brands' past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 3.1% growth on an annualised basis. That is in line with its 2.7% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.9% per year. So it's pretty clear that Kontoor Brands is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Kontoor Brands following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Kontoor Brands' 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.

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 estimates - from multiple Kontoor Brands analysts - going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Kontoor Brands 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.