Zumiez Inc. (NASDAQ:ZUMZ) just released its second-quarter report and things are looking bullish. Revenues and losses per share were both better than expected, with revenues of US$210m leading estimates by 4.1%. Statutory losses were smaller than the analystsexpected, coming in at US$0.04 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Zumiez after the latest results.

Check out our latest analysis for Zumiez

Taking into account the latest results, Zumiez's four analysts currently expect revenues in 2025 to be US$895.1m, approximately in line with the last 12 months. Zumiez is also expected to turn profitable, with statutory earnings of US$0.13 per share. Before this earnings report, the analysts had been forecasting revenues of US$879.9m and earnings per share (EPS) of US$0.14 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 minor downgrade to their earnings per share forecasts.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 31% to US$25.50, suggesting the revised estimates are not indicative of a weaker long-term future for the business. 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. The most optimistic Zumiez analyst has a price target of US$26.00 per share, while the most pessimistic values it at US$25.00. This is a very narrow spread of estimates, implying either that Zumiez is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Zumiez's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 2.1% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 3.0% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 4.8% annually for the foreseeable future. Although Zumiez's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Zumiez. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Zumiez going out to 2027, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.