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The investors in CarParts.com, Inc.'s (NASDAQ:PRTS) will be rubbing their hands together with glee today, after the share price leapt 40% to US$8.78 in the week following its quarterly results. It was overall a positive result, with revenues beating expectations by 2.5% to hit US$166m. CarParts.com also reported a statutory profit of US$0.04, which was a nice improvement from the loss that the analysts were predicting. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for CarParts.com
After the latest results, the five analysts covering CarParts.com are now predicting revenues of US$669.2m in 2022. If met, this would reflect a meaningful 11% improvement in sales compared to the last 12 months. Losses are forecast to balloon 37% to US$0.14 per share. Before this latest report, the consensus had been expecting revenues of US$663.4m and US$0.26 per share in losses. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading revenues and making a very promising decrease in losses per share in particular.
The consensus price target fell 5.9% to US$16.00despite the forecast for smaller losses next year. It looks like the ongoing lack of profitability is starting to weigh on valuations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic CarParts.com analyst has a price target of US$20.00 per share, while the most pessimistic values it at US$12.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
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. The period to the end of 2022 brings more of the same, according to the analysts, with revenue forecast to display 15% growth on an annualised basis. That is in line with its 16% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 14% annually. It's clear that while CarParts.com's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.