Arhaus: Results: Arhaus, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

In This Article: There's been a notable change in appetite for Arhaus, Inc. ( NASDAQ:ARHS ) shares in the week since its full-year report, with the stock down 16% to US$9.52. The result was positive overall - although revenues of US$1.3b were in line with what the analysts predicted, Arhaus surprised by delivering a statutory profit of US$0.49 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year. Check out our latest analysis for Arhaus NasdaqGS:ARHS Earnings and Revenue Growth March 1st 2025 Following the latest results, Arhaus' 13 analysts are now forecasting revenues of US$1.37b in 2025. This would be a satisfactory 7.9% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$0.49, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.38b and earnings per share (EPS) of US$0.52 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts. The consensus price target held steady at US$12.31, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Arhaus, with the most bullish analyst valuing it at US$14.00 and the most bearish at US$10.50 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth. 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 pretty clear that there is an expectation that Arhaus' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 7.9% growth on an annualised basis. This is compared to a historical growth rate of 20% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.1% per year. Even after the forecast slowdown in growth, it seems obvious that Arhaus is also expected to grow faster than the wider industry. The Bottom Line The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Arhaus. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$12.31, with the latest estimates not enough to have an impact on their price targets. Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Arhaus analysts - going out to 2027, and you can see them free on our platform here. Plus, you should also learn about the 2 warning signs we've spotted with Arhaus (including 1 which doesn't sit too well with us) . Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. 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.