It's been a good week for a.k.a. Brands Holding Corp. (NYSE:AKA) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.7% to US$24.62. The results don't look great, especially considering that statutory losses grew 159% toUS$0.51 per share. Revenues of US$150m did beat expectations by 4.8%, but it looks like a bit of a cold comfort. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on a.k.a. Brands Holding after the latest results.

See our latest analysis for a.k.a. Brands Holding

After the latest results, the four analysts covering a.k.a. Brands Holding are now predicting revenues of US$594.5m in 2025. If met, this would reflect a reasonable 5.3% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 97% to US$0.08. Before this earnings announcement, the analysts had been modelling revenues of US$584.4m and losses of US$0.88 per share in 2025. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a very favorable reduction to losses per share in particular.

These new estimates led to the consensus price target rising 16% to US$26.00, with lower forecast losses suggesting things could be looking up for a.k.a. Brands Holding. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on a.k.a. Brands Holding, with the most bullish analyst valuing it at US$30.00 and the most bearish at US$20.00 per share. 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 a.k.a. Brands Holding shareholders.

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. It's pretty clear that there is an expectation that a.k.a. Brands Holding's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.2% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past five years. Compare this to the 148 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.8% per year. Factoring in the forecast slowdown in growth, it looks like a.k.a. Brands Holding is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 forecasts for a.k.a. Brands Holding going out to 2025, and you can see them free on our platform here.

Even so, be aware that a.k.a. Brands Holding is showing 2 warning signs in our investment analysis , and 1 of those is a bit concerning...

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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.