Earnings Release: Here's Why Analysts Cut Their a.k.a. Brands Holding Corp. (NYSE:AKA) Price Target To US$23.75

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a.k.a. Brands Holding Corp. (NYSE:AKA) shareholders are probably feeling a little disappointed, since its shares fell 7.2% to US$13.24 in the week after its latest annual results. Revenues were in line with expectations, at US$575m, while statutory losses ballooned to US$2.46 per share. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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

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NYSE:AKA Earnings and Revenue Growth March 9th 2025

Taking into account the latest results, the most recent consensus for a.k.a. Brands Holding from five analysts is for revenues of US$606.3m in 2025. If met, it would imply a credible 5.5% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 58% to US$1.03. Before this earnings announcement, the analysts had been modelling revenues of US$599.7m and losses of US$0.40 per share in 2025. While this year's revenue estimates held steady, there was also a considerable increase to loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 6.9% to US$23.75, with the analysts signalling that growing losses would be a definite concern. 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. 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$17.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the a.k.a. Brands Holding's past performance and to peers in the same industry. 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 5.5% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.0% annually. So it's pretty clear that, while a.k.a. Brands Holding's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.