Shareholders might have noticed that Snap One Holdings Corp. (NASDAQ:SNPO) filed its quarterly result this time last week. The early response was not positive, with shares down 4.9% to US$9.78 in the past week. Revenues fell 7.4% short of expectations, at US$281m. Earnings correspondingly dipped, with Snap One Holdings reporting a statutory loss of US$0.01 per share, whereas the analysts had previously modelled a profit in this period. Following the result, the analysts have 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Snap One Holdings after the latest results.

See our latest analysis for Snap One Holdings

Taking into account the latest results, Snap One Holdings' eight analysts currently expect revenues in 2023 to be US$1.11b, approximately in line with the last 12 months. Snap One Holdings is also expected to turn profitable, with statutory earnings of US$0.011 per share. Before this earnings report, the analysts had been forecasting revenues of US$1.22b and earnings per share (EPS) of US$0.27 in 2023. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.

It'll come as no surprise then, to learn that the analysts have cut their price target 20% to US$13.25. 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 Snap One Holdings analyst has a price target of US$18.00 per share, while the most pessimistic values it at US$11.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Snap One Holdings shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 1.5% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 21% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 1.5% annually for the foreseeable future.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Snap One Holdings. Unfortunately they also downgraded their revenue estimates, although the forecast growth is still roughly in line with that of the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Snap One Holdings' future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Snap One Holdings going out to 2024, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Snap One Holdings you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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