Shareholders of KMD Brands Limited (NZSE:KMD) will be pleased this week, given that the stock price is up 13% to NZ$0.27 following its latest full-year results. Revenues were in line with expectations, at NZ$989m, while statutory losses ballooned to NZ$0.13 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the five analysts covering KMD Brands are now predicting revenues of NZ$1.03b in 2026. If met, this would reflect an okay 4.4% improvement in revenue compared to the last 12 months. Statutory losses are forecast to balloon 96% to NZ$0.0048 per share. Before this earnings report, the analysts had been forecasting revenues of NZ$1.03b and earnings per share (EPS) of NZ$0.0063 in 2026. So despite reconfirming their revenue estimates, the analysts are now forecasting a loss instead of a profit, which looks like a definite drop in sentiment following the latest results.

View our latest analysis for KMD Brands

With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 7.6% to NZ$0.33, with the analysts signalling that growing losses would be a definite concern. 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 KMD Brands analyst has a price target of NZ$0.45 per share, while the most pessimistic values it at NZ$0.28. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the KMD Brands' past performance and to peers in the same industry. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 4.4% growth on an annualised basis. That is in line with its 3.7% annual growth 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 revenues grow 6.7% per year. So although KMD Brands is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The most important thing to take away is that the analysts are expecting KMD Brands to become unprofitable 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 KMD Brands' revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of KMD Brands' future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on KMD Brands. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple KMD Brands analysts - going out to 2028, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for KMD Brands you should be aware of.

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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.