Yahoo Finance Analyst Estimates: Here's What Brokers Think Of Coupang, Inc. (NYSE:CPNG) After Its First-Quarter Report
Coupang, Inc. (NYSE:CPNG) shareholders are probably feeling a little disappointed, since its shares fell 4.6% to US$21.46 in the week after its latest quarterly results. Results were overall in line with expectations, with the company breaking even at the statutory earnings per share (EPS) level on US$7.1b in revenue. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Coupang
After the latest results, the 16 analysts covering Coupang are now predicting revenues of US$30.1b in 2024. If met, this would reflect a notable 17% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to plummet 53% to US$0.34 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$29.3b and earnings per share (EPS) of US$0.28 in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a substantial gain in earnings per share in particular.
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$23.63, suggesting that the forecast performance does not have a long term impact on the company's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Coupang, with the most bullish analyst valuing it at US$32.00 and the most bearish at US$18.00 per share. 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.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Coupang's growth to accelerate, with the forecast 23% annualised growth to the end of 2024 ranking favourably alongside historical growth of 17% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 10% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Coupang 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 Coupang following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at US$23.63, 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 Coupang. Long-term earnings power is much more important than next year's profits. We have forecasts for Coupang going out to 2026, and you can see them free on our platform here.
You still need to take note of risks, for example - Coupang has 1 warning sign we think you should be aware of.
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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.
