There's been a notable change in appetite for LifeVantage Corporation (NASDAQ:LFVN) shares in the week since its second-quarter report, with the stock down 10% to US$18.99. It looks like a credible result overall - although revenues of US$68m were what the analysts expected, LifeVantage surprised by delivering a (statutory) profit of US$0.19 per share, an impressive 81% above what was forecast. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for LifeVantage

Taking into account the latest results, the most recent consensus for LifeVantage from three analysts is for revenues of US$239.7m in 2025. If met, it would imply a decent 13% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 25% to US$0.73. In the lead-up to this report, the analysts had been modelling revenues of US$238.5m and earnings per share (EPS) of US$0.91 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 465% to US$32.50, suggesting the revised estimates are not indicative of a weaker long-term future for the business. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic LifeVantage analyst has a price target of US$35.00 per share, while the most pessimistic values it at US$30.00. This is a very narrow spread of estimates, implying either that LifeVantage is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that LifeVantage is forecast to grow faster in the future than it has in the past, with revenues expected to display 28% annualised growth until the end of 2025. If achieved, this would be a much better result than the 2.8% annual decline 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 4.6% annually. Not only are LifeVantage's revenues expected to improve, it seems that the analysts are also expecting it 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 LifeVantage. 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. 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. We have estimates - from multiple LifeVantage analysts - going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with LifeVantage , and understanding it should be part of your investment process.

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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.