BRC Inc. (NYSE:BRCC) shareholders are probably feeling a little disappointed, since its shares fell 6.3% to US$5.04 in the week after its latest quarterly results. Revenues of US$83m were in line with expectations, although statutory losses per share were US$0.08, some 16% smaller than was 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for BRC
Taking into account the latest results, the most recent consensus for BRC from seven analysts is for revenues of US$422.4m in 2023 which, if met, would be a sizeable 32% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 81% to US$0.08. Before this earnings announcement, the analysts had been modelling revenues of US$422.6m and losses of US$0.067 per share in 2023. So it's pretty clear the analysts have mixed opinions on BRC even after this update; although they reconfirmed their revenue numbers, it came at the cost of a considerable increase in per-share losses.
As a result, there was no major change to the consensus price target of US$9.58, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. 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. There are some variant perceptions on BRC, with the most bullish analyst valuing it at US$19.00 and the most bearish at US$5.00 per share. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
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. The analysts are definitely expecting BRC's growth to accelerate, with the forecast 45% annualised growth to the end of 2023 ranking favourably alongside historical growth of 28% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.0% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that BRC is expected to grow much faster than its industry.