Earnings Update: Here's Why Analysts Just Lifted Their Advantage Solutions Inc. (NASDAQ:ADV) Price Target To US$42.50

The investors in Advantage Solutions Inc.'s (NASDAQ:ADV) will be rubbing their hands together with glee today, after the share price leapt 30% to US$44.43 in the week following its quarterly results. The results don't look great, especially considering that statutory losses grew 47% toUS$5.49 per share. Revenues of US$870m did beat expectations by 4.5%, but it looks like a bit of a cold comfort. 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.

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Taking into account the latest results, Advantage Solutions' two analysts currently expect revenues in 2026 to be US$3.58b, approximately in line with the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 46% to US$9.98. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$3.53b and losses of US$7.53 per share in 2026. So it's pretty clear the analysts have mixed opinions on Advantage Solutions even after this update; although they reconfirmed their revenue numbers, it came at the cost of a considerable increase to per-share losses.

View our latest analysis for Advantage Solutions

Despite expectations of heavier losses next year,the analysts have lifted their price target 51% to US$42.50, perhaps implying these losses are not expected to be recurring over the long term.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Advantage Solutions' past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.5% by the end of 2026. This indicates a significant reduction from annual growth of 0.5% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.5% annually for the foreseeable future. It's pretty clear that Advantage Solutions' revenues are expected to perform substantially worse than the wider industry.

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The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Advantage Solutions' revenue is expected to perform worse than 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

Even so, be aware that Advantage Solutions is showing 2 warning signs in our investment analysis, you should know about...

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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.

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