Abercrombie & Fitch Co. (NYSE:ANF) investors will be delighted, with the company turning in some strong numbers with its latest results. Abercrombie & Fitch beat earnings, with revenues hitting US$1.2b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 12%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Taking into account the latest results, the current consensus from Abercrombie & Fitch's nine analysts is for revenues of US$5.22b in 2026. This would reflect a decent 8.3% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to reduce 6.9% to US$9.79 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$5.18b and earnings per share (EPS) of US$9.58 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of US$187, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's 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. Currently, the most bullish analyst values Abercrombie & Fitch at US$220 per share, while the most bearish prices it at US$149. 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.

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 can infer from the latest estimates that forecasts expect a continuation of Abercrombie & Fitch'shistorical trends, as the 6.6% annualised revenue growth to the end of 2026 is roughly in line with the 6.6% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.7% annually. So although Abercrombie & Fitch is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Abercrombie & Fitch following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$187, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Abercrombie & Fitch. Long-term earnings power is much more important than next year's profits. We have forecasts for Abercrombie & Fitch going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Abercrombie & Fitch that you need to take into consideration.

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