Wesfarmers Limited (ASX:WES) Just Released Its Half-Yearly Results And Analysts Are Updating Their Estimates

Wesfarmers Limited (ASX:WES) came out with its half-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results were roughly in line with estimates, with revenues of AU$23b and statutory earnings per share of AU$1.29. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Wesfarmers

Taking into account the latest results, Wesfarmers' 14 analysts currently expect revenues in 2025 to be AU$45.8b, approximately in line with the last 12 months. Per-share earnings are expected to increase 2.1% to AU$2.34. Yet prior to the latest earnings, the analysts had been anticipated revenues of AU$45.6b and earnings per share (EPS) of AU$2.35 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of AU$69.31, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Wesfarmers, with the most bullish analyst valuing it at AU$85.00 and the most bearish at AU$44.50 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Wesfarmers' revenue growth is expected to slow, with the forecast 3.7% annualised growth rate until the end of 2025 being well below the historical 9.3% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.3% annually. Factoring in the forecast slowdown in growth, it looks like Wesfarmers is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at AU$69.31, 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 Wesfarmers. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Wesfarmers analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for Wesfarmers that 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.