News Flash: 10 Analysts Think Beyond, Inc. (NYSE:BYON) Earnings Are Under Threat

Simply Wall St · 6d ago

Today is shaping up negative for Beyond, Inc. (NYSE:BYON) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

After the downgrade, the ten analysts covering Beyond are now predicting revenues of US$1.7b in 2024. If met, this would reflect a reasonable 6.3% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 58% to US$3.42 per share. However, before this estimates update, the consensus had been expecting revenues of US$1.9b and US$1.99 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.

Check out our latest analysis for Beyond

NYSE:BYON Earnings and Revenue Growth May 13th 2024

The consensus price target fell 27% to US$26.43, implicitly signalling that lower earnings per share are a leading indicator for Beyond's valuation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Beyond's rate of growth is expected to accelerate meaningfully, with the forecast 8.4% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 0.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.9% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Beyond to grow faster than the wider industry.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Beyond. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Beyond.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Beyond going out to 2026, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.