Shareholders will be ecstatic, with their stake up 28% over the past week following BRC Inc.'s (NYSE:BRCC) latest first-quarter results. It was an okay result overall, with revenues coming in at US$98m, roughly what the analysts had been expecting. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for BRC

Taking into account the latest results, the most recent consensus for BRC from seven analysts is for revenues of US$446.8m in 2024. If met, it would imply a notable 8.8% increase on its revenue over the past 12 months. Statutory losses are forecast to balloon 93% to US$0.013 per share. Before this earnings report, the analysts had been forecasting revenues of US$446.1m and earnings per share (EPS) of US$0.21 in 2024. While the analysts have made no real change to their revenue estimates, we can see that the consensus is now modelling a loss next year - a clear dip in sentiment compared to the previous outlook of a profit.

As a result, there was no major change to the consensus price target of US$6.15, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values BRC at US$8.00 per share, while the most bearish prices it at US$4.75. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that BRC's revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2024 being well below the historical 26% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.9% per year. So it's pretty clear that, while BRC's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts are expecting BRC to become unprofitable next year. Happily, there were no major changes to revenue forecasts, with the business still 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. At Simply Wall St, we have a full range of analyst estimates for BRC going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 3 warning signs for BRC that you should be aware of.

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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.