Americana Restaurants International PLC Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Last week saw the newest quarterly earnings release from Americana Restaurants International PLC (ADX:AMR), an important milestone in the company's journey to build a stronger business. Statutory earnings per share fell badly short of expectations, coming in at US$0.0039, some 21% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$573m. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Americana Restaurants International after the latest results.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Taking into account the latest results, the consensus forecast from Americana Restaurants International's eleven analysts is for revenues of US$2.52b in 2025. This reflects a meaningful 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 35% to US$0.026. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.51b and earnings per share (EPS) of US$0.028 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

Check out our latest analysis for Americana Restaurants International

It might be a surprise to learn that the consensus price target was broadly unchanged at د.إ2.86, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Americana Restaurants International analyst has a price target of د.إ3.49 per share, while the most pessimistic values it at د.إ2.34. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Americana Restaurants International's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 15% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 0.8% a year over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 11% per year. Not only are Americana Restaurants International'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 Americana Restaurants International. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at د.إ2.86, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Americana Restaurants International. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Americana Restaurants International 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 Americana Restaurants International , and understanding this should be part of your investment process.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.