Shareholders of Lazydays Holdings, Inc. (NASDAQ:LAZY) will be pleased this week, given that the stock price is up 19% to US$16.46 following its latest third-quarter results. Revenues were US$216m, with Lazydays Holdings reporting some 2.3% below analyst expectations. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there’s been a strong change in the company’s prospects, or if it’s business as usual. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the current consensus from Lazydays Holdings’ solitary analyst is for revenues of US$811.9m in 2021, which would reflect a reasonable 6.1% increase on its sales over the past 12 months. Per-share earnings are expected to climb 16% to US$1.48. In the lead-up to this report, the analyst had been modelling revenues of US$781.8m and earnings per share (EPS) of US$1.41 in 2021. It looks like there’s been a modest increase in sentiment following the latest results, withthe analyst becoming a bit more optimistic in their predictions for both revenues and earnings.
It will come as no surprise to learn that the analyst has increased their price target for Lazydays Holdings 10% to US$22.00on the back of these upgrades.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Lazydays Holdings’ past performance and to peers in the same industry. Next year brings more of the same, according to the analyst, with revenue forecast to grow 6.1%, in line with its 6.3% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 9.2% per year. So although Lazydays Holdings is expected to maintain its revenue growth rate, it’s forecast to grow slower than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Lazydays Holdings’ earnings potential next year. They also upgraded their revenue estimates for next year, even though sales are expected to grow slower than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. We have analyst estimates for Lazydays Holdings going out as far as 2021, and you can see them free on our platform here.
You should always think about risks though. Case in point, we’ve spotted 3 warning signs for Lazydays Holdings you should be aware of.
This article by Simply Wall St is general in nature. 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.