Camping World Holdings, Inc. Reported A Surprise Loss, And Analysts Have Updated Their Forecasts
It's been a pretty great week for Camping World Holdings, Inc. (NYSE:CWH) shareholders, with its shares surging 18% to US$5.42 in the week since its latest third-quarter results. It was a pretty negative result overall, with revenues of US$1.6b missing analyst predictions by 5.6%. Worse, the business reported a statutory loss of US$3.09 per share, a substantial decline on analyst expectations of a profit. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
After the latest results, the eleven analysts covering Camping World Holdings are now predicting revenues of US$6.20b in 2027. If met, this would reflect an okay 2.5% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Camping World Holdings forecast to report a statutory profit of US$0.29 per share. In the lead-up to this report, the analysts had been modelling revenues of US$6.41b and earnings per share (EPS) of US$0.43 in 2027. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.
See our latest analysis for Camping World Holdings
The analysts made no major changes to their price target of US$8.83, suggesting the downgrades are not expected to have a long-term impact on Camping World Holdings' valuation. 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 Camping World Holdings at US$12.00 per share, while the most bearish prices it at US$5.30. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
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. One thing stands out from these estimates, which is that Camping World Holdings is forecast to grow faster in the future than it has in the past, with revenues expected to display 2.0% annualised growth until the end of 2027. If achieved, this would be a much better result than the 2.8% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 6.0% per year. Although Camping World Holdings' revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Camping World Holdings. 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. The consensus price target held steady at US$8.83, 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 Camping World Holdings. 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 Camping World Holdings going out to 2028, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 1 warning sign for Camping World Holdings you should be aware of.
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