Etn. Fr. Colruyt NV Just Recorded A 15% EPS Beat: Here's What Analysts Are Forecasting Next

Etn. Fr. Colruyt NV (EBR:COLR) just released its interim report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 2.2% to hit €5.0b. Etn. Fr. Colruyt reported statutory earnings per share (EPS) €1.81, which was a notable 15% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Etn. Fr. Colruyt

Taking into account the latest results, Etn. Fr. Colruyt's twelve analysts currently expect revenues in 2021 to be €9.97b, approximately in line with the last 12 months. Statutory earnings per share are forecast to fall 16% to €2.98 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €9.79b and earnings per share (EPS) of €2.86 in 2021. So the consensus seems to have become somewhat more optimistic on Etn. Fr. Colruyt's earnings potential following these results.

There's been no major changes to the consensus price target of €46.81, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's 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. There are some variant perceptions on Etn. Fr. Colruyt, with the most bullish analyst valuing it at €53.00 and the most bearish at €39.50 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. We can infer from the latest estimates that forecasts expect a continuation of Etn. Fr. Colruyt'shistorical trends, as next year's 1.3% revenue growth is roughly in line with 1.1% annual revenue 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 3.7% per year. So although Etn. Fr. Colruyt is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Etn. Fr. Colruyt's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Etn. Fr. Colruyt's revenues are expected to perform worse than the wider industry. The consensus price target held steady at €46.81, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Etn. Fr. Colruyt going out to 2025, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Etn. Fr. Colruyt that you should be aware of.

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This article by Simply Wall St is general in nature. 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.
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