A week ago, 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 16% higher than the analysts had forecast, at US$877m, while EPS were US$1.76 beating analyst models by 29%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on 1-800-FLOWERS.COM after the latest results.
Taking into account the latest results, the current consensus from 1-800-FLOWERS.COM's five analysts is for revenues of US$1.95b in 2021, which would reflect an okay 5.1% increase on its sales over the past 12 months. Statutory earnings per share are forecast to descend 15% to US$1.37 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$1.75b and earnings per share (EPS) of US$1.17 in 2021. There has definitely been an improvement in perception after these results, with the analysts noticeably increasing both their earnings and revenue estimates.
It will come as no surprise to learn that the analysts have increased their price target for 1-800-FLOWERS.COM 17% to US$40.67on the back of these upgrades. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic 1-800-FLOWERS.COM analyst has a price target of US$47.00 per share, while the most pessimistic values it at US$30.00. 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 1-800-FLOWERS.COM's past performance and to peers in the same industry. It's pretty clear that there is an expectation that 1-800-FLOWERS.COM's revenue growth will slow down substantially, with revenues next year expected to grow 5.1%, compared to a historical growth rate of 6.5% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 18% per year. Factoring in the forecast slowdown in growth, it seems obvious that 1-800-FLOWERS.COM is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards 1-800-FLOWERS.COM following these results. Fortunately, they also upgraded their revenue estimates, although our data indicates sales are expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for 1-800-FLOWERS.COM going out to 2023, and you can see them free on our platform here..
Plus, you should also learn about the 1 warning sign we've spotted with 1-800-FLOWERS.COM .
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.
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