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As you might know, Floor & Decor Holdings, Inc. (NYSE:FND) recently reported its first-quarter numbers. The result was positive overall - although revenues of US$1.2b were in line with what the analysts predicted, Floor & Decor Holdings surprised by delivering a statutory profit of US$0.45 per share, modestly greater than expected. 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.
Taking into account the latest results, the consensus forecast from Floor & Decor Holdings' 22 analysts is for revenues of US$4.72b in 2025. This reflects a credible 4.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to reduce 4.5% to US$1.82 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$4.82b and earnings per share (EPS) of US$1.94 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.
View our latest analysis for Floor & Decor Holdings
It'll come as no surprise then, to learn that the analysts have cut their price target 15% to US$85.39. 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. Currently, the most bullish analyst values Floor & Decor Holdings at US$105 per share, while the most bearish prices it at US$59.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
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. It's pretty clear that there is an expectation that Floor & Decor Holdings' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.0% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. Compare this to the 149 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.0% per year. So it's pretty clear that, while Floor & Decor Holdings' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.