YETI Holdings, Inc. (NYSE:YETI) shareholders are probably feeling a little disappointed, since its shares fell 2.4% to US$28.16 in the week after its latest quarterly results. YETI Holdings reported US$351m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$0.20 beat expectations, being 4.6% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the most recent consensus for YETI Holdings from 17 analysts is for revenues of US$1.88b in 2025. If met, it would imply a reasonable 2.3% increase on its revenue over the past 12 months. Statutory earnings per share are expected to sink 12% to US$1.87 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$1.95b and earnings per share (EPS) of US$2.61 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.

Check out our latest analysis for YETI Holdings

The consensus price target fell 11% to US$34.40, with the weaker earnings outlook clearly leading valuation estimates. 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. The most optimistic YETI Holdings analyst has a price target of US$53.00 per share, while the most pessimistic values it at US$28.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that YETI Holdings' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.0% growth on an annualised basis. This is compared to a historical growth rate of 12% 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) 2.8% annually. So it's pretty clear that, while YETI Holdings' 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 YETI Holdings' future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on YETI Holdings. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple YETI Holdings analysts - going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades  for the last twelve months on our platform, here.

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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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