Analysts have revised their 2024 forecasts for Canada Goose Holdings Inc . (TSE:NYSE:GOOS), now predicting revenues of CA$1.3 billion, a 3.5% sales increase, and a 14% rise in earnings per share (EPS) to CA$0.61. This marks a significant reduction from earlier predictions of CA$1.4 billion in revenues and CA$1.04 EPS. The consensus price target has also been lowered by 26% to CA$18.19 as a result of the weaker earnings outlook.
The company's revenue growth is projected to slow down considerably, with an anticipated annualized growth rate of 7.2% by the end of 2024, compared to its historical growth rate of 9.7%. This forecast slowdown aligns Canada Goose Holdings with the wider industry's projected annual growth rate of 7.4%.
Analysts have trimmed their EPS estimates due to expected downturns in business conditions and have also reduced their revenue estimates. Despite these revisions, the anticipated growth is expected to align with the broader market trends.
The consensus price target has taken a significant hit, suggesting that recent business developments have not reassured analysts about Canada Goose's future valuation. The company's deteriorating profit margins may pose a concern for investors.
However, substantial investments from the company management in the stock and insider buying activity could indicate confidence in its future performance. These observations are based on historical data and analyst forecasts using an unbiased methodology. The analysis is fundamentally driven and long-term focused, considering the latest price-sensitive company announcements.
In addition, another warning sign has been identified that potential investors can uncover on a free platform mentioned in the article. A list of stocks that insiders are buying is also available, offering further insights for potential investors.
InvestingPro Insights
To further enrich the analysis, let's look at some InvestingPro Tips and real-time data. According to InvestingPro, management has been aggressively buying back shares, which could indicate confidence in the future performance of Canada Goose Holdings. This aligns with the insider buying activity mentioned in the article. Additionally, the company has impressive gross profit margins, which stood at 68.09% for the last twelve months as of Q2 2024.
However, the Relative Strength Index (RSI) suggests the stock is currently in oversold territory, and the stock has taken a significant hit over the last week, month, and three months. This is reflected in the company's market cap, which stands at $1050 million USD.
InvestingPro also highlights that the company's revenue growth has been slowing down recently, in line with the article's analysis. The data shows a revenue growth of 6.88% for the last twelve months as of Q2 2024, which is slightly below the projected annual growth rate mentioned in the article.
For more insights and tips, consider exploring the InvestingPro platform, which includes a total of 14 InvestingPro Tips for Canada Goose Holdings.
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