It's been a mediocre week for Revolve Group, Inc. (NYSE:RVLV) shareholders, with the stock dropping 10% to US$17.43 in the week since its latest first-quarter results. Revenues were US$297m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$0.16 were also better than expected, beating analyst predictions by 15%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Our free stock report includes 1 warning sign investors should be aware of before investing in Revolve Group. Read for free now.NYSE:RVLV Earnings and Revenue Growth May 9th 2025

Taking into account the latest results, the current consensus from Revolve Group's 15 analysts is for revenues of US$1.19b in 2025. This would reflect a modest 3.2% increase on its revenue over the past 12 months. Statutory earnings per share are expected to plummet 41% to US$0.41 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$1.22b and earnings per share (EPS) of US$0.70 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.

View our latest analysis for Revolve Group

The consensus price target fell 21% to US$21.73, with the weaker earnings outlook clearly leading valuation estimates. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Revolve Group at US$30.00 per share, while the most bearish prices it at US$17.00. 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 Revolve Group shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Revolve Group's revenue growth is expected to slow, with the forecast 4.3% annualised growth rate until the end of 2025 being well below the historical 14% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.9% annually. So it's pretty clear that, while Revolve Group's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

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The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Revolve Group's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Revolve Group going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified  1 warning sign for Revolve Group that 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.

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