Victoria's Secret & Co. (NYSE:VSXY) just released its latest quarterly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 2.5% to hit US$1.6b. Victoria's Secret also reported a statutory profit of US$0.56, which was an impressive 93% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Taking into account the latest results, the consensus forecast from Victoria's Secret's nine analysts is for revenues of US$7.13b in 2027. This reflects a reasonable 5.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 74% to US$4.61. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$6.96b and earnings per share (EPS) of US$3.51 in 2027. So it seems there's been a definite increase in optimism about Victoria's Secret's future following the latest results, with a massive increase in the earnings per share forecasts in particular.

It will come as no surprise to learn that the analysts have increased their price target for Victoria's Secret 34% to US$88.11on the back of these upgrades. 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. There are some variant perceptions on Victoria's Secret, with the most bullish analyst valuing it at US$108 and the most bearish at US$73.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Victoria's Secret's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Victoria's Secret is forecast to grow faster in the future than it has in the past, with revenues expected to display 7.3% annualised growth until the end of 2027. If achieved, this would be a much better result than the 0.6% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 6.1% per year. So while Victoria's Secret's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Victoria's Secret following these results. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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. We have forecasts for Victoria's Secret going out to 2029, and you can see them free on our platform here.

You should always think about risks though.

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.