Shareholders will be ecstatic, with their stake up 25% over the past week following Wolverine World Wide, Inc.'s (NYSE:WWW) latest quarterly results. Revenues of US$395m beat expectations by a respectable 9.2%, although statutory losses per share increased. Wolverine World Wide lost US$0.19, which was 423% more than what the analysts had included in their models. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Wolverine World Wide

Taking into account the latest results, the current consensus, from the eight analysts covering Wolverine World Wide, is for revenues of US$1.72b in 2024. This implies a not inconsiderable 16% reduction in Wolverine World Wide's revenue over the past 12 months. Earnings are expected to improve, with Wolverine World Wide forecast to report a statutory profit of US$0.62 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.71b and earnings per share (EPS) of US$0.74 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 39% to US$13.71, suggesting the revised estimates are not indicative of a weaker long-term future for the business. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Wolverine World Wide at US$16.00 per share, while the most bearish prices it at US$11.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Wolverine World Wide's past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 20% by the end of 2024. This indicates a significant reduction from annual growth of 3.4% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.0% annually for the foreseeable future. It's pretty clear that Wolverine World Wide's revenues are expected to perform substantially worse 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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Wolverine World Wide's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Wolverine World Wide. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Wolverine World Wide going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with Wolverine World Wide (including 1 which is a bit concerning) .

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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.