Lakeland Industries, Inc. (NASDAQ:LAKE) shareholders are probably feeling a little disappointed, since its shares fell 9.9% to US$12.00 in the week after its latest quarterly results. It was a pretty negative result overall, with revenues of US$28m missing analyst predictions by 4.6%. Worse, the business reported a statutory loss of US$0.11 per share, a substantial decline on analyst expectations of a profit. 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.

Check out our latest analysis for Lakeland Industries

Taking into account the latest results, the most recent consensus for Lakeland Industries from dual analysts is for revenues of US$116.8m in 2023 which, if met, would be a modest 4.0% increase on its sales over the past 12 months. Statutory earnings per share are predicted to bounce 44% to US$0.70. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$120.9m and earnings per share (EPS) of US$1.16 in 2023. The analysts seem less optimistic after the recent results, reducing their sales forecasts and making a pretty serious reduction to earnings per share numbers.

The consensus price target fell 30% to US$28.00, with the weaker earnings outlook clearly leading valuation estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Lakeland Industries' past performance and to peers in the same industry. The period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 8.2% growth on an annualised basis. That is in line with its 8.0% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 8.2% per year. So although Lakeland Industries is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

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. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

Even so, be aware that Lakeland Industries is showing 2 warning signs in our investment analysis , you should know about...

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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.