As you might know, CarParts.com, Inc. (NASDAQ:PRTS) last week released its latest quarterly, and things did not turn out so great for shareholders. It was a pretty negative result overall, with revenues of US$144m missing analyst predictions by 7.4%. Worse, the business reported a statutory loss of US$0.15 per share, much larger than the analysts had forecast prior to the result. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Taking into account the latest results, the twin analysts covering CarParts.com provided consensus estimates of US$591.1m revenue in 2024, which would reflect a small 6.7% decline over the past 12 months. Per-share losses are predicted to creep up to US$0.46. Before this earnings announcement, the analysts had been modelling revenues of US$604.7m and losses of US$0.39 per share in 2024. While this year's revenue estimates dropped there was also a considerable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The average price target fell 29% to US$1.65, implicitly signalling that lower earnings per share are a leading indicator for CarParts.com's valuation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that revenue is expected to reverse, with a forecast 13% annualised decline to the end of 2024. That is a notable change from historical growth of 18% 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 4.8% annually for the foreseeable future. It's pretty clear that CarParts.com's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at CarParts.com. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on CarParts.com. Long-term earnings power is much more important than next year's profits. We have analyst estimates for CarParts.com going out as far as 2025, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 4 warning signs for CarParts.com you should be aware of, and 1 of them is a bit concerning.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com