Last week, you might have seen that PVH Corp. (NYSE:PVH) released its third-quarter result to the market. The early response was not positive, with shares down 2.7% to US$110 in the past week. Results were roughly in line with estimates, with revenues of US$2.3b and statutory earnings per share of US$2.34. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Following last week's earnings report, PVH's 15 analysts are forecasting 2026 revenues to be US$8.79b, approximately in line with the last 12 months. Statutory per share are forecast to be US$12.61, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$8.82b and earnings per share (EPS) of US$12.78 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$128, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on PVH, with the most bullish analyst valuing it at US$177 and the most bearish at US$103 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
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. It's pretty clear that there is an expectation that PVH's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 0.1% growth on an annualised basis. This is compared to a historical growth rate of 0.9% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.2% per year. Factoring in the forecast slowdown in growth, it seems obvious that PVH is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that PVH's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$128, 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 estimates - from multiple PVH analysts - going out to 2027, and you can see them free on our platform here.
You can also see whether PVH is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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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.