Stock Analysis

Greenyard NV Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

ENXTBR:GREEN
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It's been a pretty great week for Greenyard NV (EBR:GREEN) shareholders, with its shares surging 13% to €6.08 in the week since its latest annual results. Results overall were not great, with earnings of €0.28 per share falling drastically short of analyst expectations. Meanwhile revenues hit €5.1b and were slightly better than forecasts. 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.

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ENXTBR:GREEN Earnings and Revenue Growth May 27th 2024

After the latest results, the four analysts covering Greenyard are now predicting revenues of €5.44b in 2025. If met, this would reflect a reasonable 5.8% improvement in revenue compared to the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €5.13b and earnings per share (EPS) of €0.51 in 2025. The thing that stands out most is that, while there's been a small increase to revenue estimates, the consensus no longer provides an EPS estimate. This impliesthat revenue is more important following the latest results.

The average price target fell 48% to €9.02, withthe analysts clearly having become less optimistic about Greenyard'sprospects following its latest earnings. 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. Currently, the most bullish analyst values Greenyard at €12.60 per share, while the most bearish prices it at €7.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Greenyard's past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 5.8% growth on an annualised basis. That is in line with its 5.1% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 8.9% annually. So it's pretty clear that Greenyard is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to take away is that the analysts upgraded their revenue estimates for next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Greenyard's future valuation.

At least one of Greenyard's four analysts has provided estimates out to 2027, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Greenyard (of which 1 is significant!) you should know about.

Valuation is complex, but we're helping make it simple.

Find out whether Greenyard is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.