Earnings Release: Here's Why Analysts Cut Their Lifetime Brands, Inc. (NASDAQ:LCUT) Price Target To US$6.00

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The analysts might have been a bit too bullish on Lifetime Brands, Inc. (NASDAQ:LCUT), given that the company fell short of expectations when it released its second-quarter results last week. It was a pretty negative result overall, with revenues of US$132m missing analyst predictions by 4.5%. Worse, the business reported a statutory loss of US$1.83 per share, much larger than the analysts had forecast prior to the result. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following last week's earnings report, Lifetime Brands' two analysts are forecasting 2025 revenues to be US$661.6m, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$671.6m and earnings per share (EPS) of US$0.14 in 2025. So despite reconfirming their revenue estimates, the analysts are now forecasting a loss instead of a profit, which looks like a definite drop in sentiment following the latest results.

Check out our latest analysis for Lifetime Brands

With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 7.7% to US$6.00, with the analysts signalling that growing losses would be a definite concern.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would also point out that the forecast 2.8% annualised revenue decline to the end of 2025 is better than the historical trend, which saw revenues shrink 4.5% annually over the past five years Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 3.7% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Lifetime Brands to suffer worse than the wider industry.

The Bottom Line

The biggest low-light for us was that the forecasts for Lifetime Brands dropped from profits to a loss next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Lifetime Brands. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Before you take the next step you should know about the 3 warning signs for Lifetime Brands that we have uncovered.

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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.