Fossil Group, Inc. (NASDAQ:FOSL) just released its latest quarterly results and things are looking bullish. Revenues and losses per share were both better than expected, with revenues of US$210m leading estimates by 5.2%. Statutory losses were smaller than the analystsexpected, coming in at US$0.18 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.

Taking into account the latest results, the current consensus, from the two analysts covering Fossil Group, is for revenues of US$959.2m in 2026. This implies a small 2.6% reduction in Fossil Group's revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 55% to US$0.56. Before this earnings announcement, the analysts had been modelling revenues of US$954.5m and losses of US$0.35 per share in 2026. While this year's revenue estimates held steady, there was also a considerable increase to loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

Although the analysts are now forecasting higher losses, the average price target rose 7.1% to 7, which could indicate that these losses are expected to be "one-off", or are not anticipated to have a longer-term impact on the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2026 compared to the historical decline of 14% per annum over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 5.1% annually. So while a broad number of companies are forecast to grow, unfortunately Fossil Group is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. 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.

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 analyst estimates for Fossil Group going out as far as 2027, and you can see them free on our platform here.

Even so, be aware that Fossil Group is showing 1 warning sign in our investment analysis , you should know about...

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.