Yahoo Finance Citi Trends, Inc. (NASDAQ:CTRN) Just Released Its First-Quarter Earnings: Here's What Analysts Think
Citi Trends, Inc. (NASDAQ:CTRN) shareholders are probably feeling a little disappointed, since its shares fell 7.4% to US$22.61 in the week after its latest quarterly results. The results overall were pretty much dead in line with analyst forecasts; revenues were US$186m and statutory losses were US$0.42 per share. 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.
Check out our latest analysis for Citi Trends
Following last week's earnings report, Citi Trends' three analysts are forecasting 2025 revenues to be US$752.9m, approximately in line with the last 12 months. Losses are expected to hold steady at around US$1.02. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$760.8m and losses of US$0.96 per share in 2025. So it's pretty clear consensus is mixed on Citi Trends after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a moderate increase in per-share loss expectations.
The consensus price target held steady at US$31.00, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Citi Trends at US$35.00 per share, while the most bearish prices it at US$25.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Citi Trends' past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.3% by the end of 2025. This indicates a significant reduction from annual growth of 0.4% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.6% per year. It's pretty clear that Citi Trends' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Citi Trends' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$31.00, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Citi Trends analysts - going out to 2027, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 1 warning sign for Citi Trends that you need to be mindful 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.
