The investors in ToughBuilt Industries, Inc.'s (NASDAQ:TBLT) will be rubbing their hands together with glee today, after the share price leapt 29% to US$0.78 in the week following its quarterly results. Revenues came in 44% better than analyst models expected, at US$12m, although statutory losses were 12% larger than expected, at US$0.09 per share. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on ToughBuilt Industries after the latest results.

Check out our latest analysis for ToughBuilt Industries

Taking into account the latest results, the current consensus from ToughBuilt Industries' solitary analyst is for revenues of US$55.1m in 2021, which would reflect a decent 15% increase on its sales over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 64% to US$0.17. Before this latest report, the consensus had been expecting revenues of US$55.1m and US$0.17 per share in losses.

The analyst trimmed their valuations, with the average price target falling 20% to US$2.00, with the ongoing losses seemingly weighing on sentiment, despite no real changes to the earnings forecasts.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the ToughBuilt Industries' past performance and to peers in the same industry. We would highlight that ToughBuilt Industries' revenue growth is expected to slow, with the forecast 21% annualised growth rate until the end of 2021 being well below the historical 39% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.7% annually. So it's pretty clear that, while ToughBuilt Industries' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analyst reconfirmed their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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. At least one analyst has provided forecasts out to 2022, which can be seen for free on our platform here.

You still need to take note of risks, for example - ToughBuilt Industries has 5 warning signs (and 1 which is concerning) we think you should know about.

This article by Simply Wall St is general in nature. 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.

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