Analysts have been trimming noodles with company (NASDAQ:NDLS) price targets after its latest report
investor Noodles and companies (NASDAQ:NDLS) had a great week as its stock price rose 7.2% to close at $1.42 after its full-year results were released. Revenue was $493 million, in line with expectations, while the statutory loss was much higher than expected, at $0.80 per share. Revenue is an important moment for investors, as they can track the company’s performance, see what analysts predict for next year, and see if sentiment towards the company has changed. Readers will be happy to know that we have compiled the latest statutory forecasts to see if analysts have changed their minds after the latest results.
Check out our latest analysis noodles
Considering the latest results, the three analysts of the noodles are currently expected to earn $500.6 million in 2025, which is approximately consistent with the past 12 months. Loss per share is expected to be significantly reduced in the near future, with a 62% reduction to $0.30. Before this latest report, consensus estimates revenue of $491.6 million and a loss of $0.33 per share. Therefore, given the escalation of losses per share this year, analysts' views seem to have been moderately improved.
Even with lower losses, analysts lowered their valuations, with an average price target dropping 14% to $3.00. It seems that analysts are becoming less optimistic about the entire business.
These estimates are interesting, but drawing some broader strokes is useful when observing how to predict how past performance of noodles is compared to peers in the same industry. We will stress that noodle revenue growth is expected to slow until the end of 2025, with a forecast annual growth rate of 1.5%, well below the historic 4.2% PA growth over the past five years. Comparing this with other companies in the industry (analyst forecasts) the company is expected to grow revenue by a total of 9.7% per year. So it is clear that while revenue growth is expected to slow, the wider industry is also expected to be faster than noodles.
The most obvious conclusion is that analysts have not made any changes to their forecast for losses for next year. Fortunately, analysts also reconfirmed their revenue estimates, which showed that it matched expectations. Although our data does show that noodle revenue is expected to be worse than the broader industry. Additionally, analysts have lowered their price targets, suggesting the latest news makes the business more pessimistic.
