Coles Group Limited (ASX:COL) Interim Results: Here's What Analysts Are Forecasting For This Year

Investors in Coles Group Limited (ASX:COL) had a good week, as its shares rose 7.3% to close at AU$17.85 following the release of its interim results. Coles Group reported in line with analyst predictions, delivering revenues of AU$21b and statutory earnings per share of AU$0.75, suggesting the business is executing well and in line with its plan. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Coles Group

Following last week's earnings report, Coles Group's 14 analysts are forecasting 2022 revenues to be AU$39.3b, approximately in line with the last 12 months. Statutory per share are forecast to be AU$0.75, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of AU$39.6b and earnings per share (EPS) of AU$0.75 in 2022. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at AU$18.29. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Coles Group at AU$19.80 per share, while the most bearish prices it at AU$13.60. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Coles Group's growth to accelerate, with the forecast 1.0% annualised growth to the end of 2022 ranking favourably alongside historical growth of 0.5% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 3.1% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Coles Group is expected to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Coles Group's revenues are expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Coles Group. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Coles Group going out to 2024, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Coles Group .

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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.