Investors in Acushnet Holdings Corp. (NYSE:GOLF) had a good week, as its shares rose 2.6% to close at US$63.47 following the release of its first-quarter results. The result was positive overall - although revenues of US$708m were in line with what the analysts predicted, Acushnet Holdings surprised by delivering a statutory profit of US$1.35 per share, modestly greater than expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Acushnet Holdings

After the latest results, the eight analysts covering Acushnet Holdings are now predicting revenues of US$2.48b in 2024. If met, this would reflect an okay 3.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 3.2% to US$3.16. Before this earnings report, the analysts had been forecasting revenues of US$2.47b and earnings per share (EPS) of US$3.23 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$70.88, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Acushnet Holdings, with the most bullish analyst valuing it at US$86.00 and the most bearish at US$62.00 per share. 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 Acushnet Holdings shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Acushnet Holdings' revenue growth is expected to slow, with the forecast 4.2% annualised growth rate until the end of 2024 being well below the historical 10% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.0% annually. Even after the forecast slowdown in growth, it seems obvious that Acushnet Holdings is also expected to grow faster than 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Acushnet Holdings going out to 2026, and you can see them free on our platform here.

Even so, be aware that Acushnet Holdings 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.