Shareholders of CarParts.com, Inc. (NASDAQ:PRTS) will be pleased this week, given that the stock price is up 17% to US$0.83 following its latest quarterly results. Revenues were in line with expectations, at US$145m, while statutory losses ballooned to US$0.17 per share. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for CarParts.com

Taking into account the latest results, CarParts.com's three analysts currently expect revenues in 2025 to be US$609.6m, approximately in line with the last 12 months. Losses are predicted to fall substantially, shrinking 37% to US$0.37. Before this latest report, the consensus had been expecting revenues of US$607.4m and US$0.36 per share in losses.

As a result, it's unexpected to see that the consensus price target fell 15% to US$1.40, with the analysts seemingly becoming more concerned about ongoing losses, despite making no major changes to their forecasts. 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. Currently, the most bullish analyst values CarParts.com at US$2.00 per share, while the most bearish prices it at US$0.80. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the 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. 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 15% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.8% annually for the foreseeable future. It's pretty clear that CarParts.com's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss 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 CarParts.com's revenue is expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.