Analysts Have Made A Financial Statement On Advantage Solutions Inc.'s (NASDAQ:ADV) Third-Quarter Report

Investors in Advantage Solutions Inc. (NASDAQ:ADV) had a good week, as its shares rose 4.4% to close at US$31.57 following the release of its third-quarter results. The results look positive overall; while revenues of US$914m were in line with analyst predictions, statutory losses were 8.0% smaller than expected, with Advantage Solutions losing US$1.96 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, Advantage Solutions' twin analysts currently expect revenues in 2027 to be US$3.64b, approximately in line with the last 12 months. Losses are predicted to fall substantially, shrinking 77% to US$5.91. Before this earnings announcement, the analysts had been modelling revenues of US$3.64b and losses of US$5.91 per share in 2027.

Check out our latest analysis for Advantage Solutions

As a result there was no major change to the consensus price target of US$42.00, implying that the business is trading roughly in line with expectations despite ongoing losses.

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. From these estimates it looks as though the analysts expect the years of declining revenue to come to an end, given the flat forecast out to 2027. That would be a definite improvement, given that the past five years have seen revenue shrink 1.3% annually. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 9.4% annually. So it's pretty clear that, although revenues are improving, Advantage Solutions is still expected to grow slower than the industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for 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. The consensus price target held steady at US$42.00, with the latest estimates not enough to have an impact on their price targets.

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. We have analyst estimates for Advantage Solutions going out as far as 2028, 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 Advantage Solutions you should be aware of.

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