Greenyard NV Just Missed Earnings - But Analysts Have Updated Their Models

It's been a good week for Greenyard NV (EBR:GREEN) shareholders, because the company has just released its latest full-year results, and the shares gained 3.2% to €10.26. It looks like a pretty bad result, all things considered. Although revenues of €4.4b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 96% to hit €0.0045 per share. 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.

View our latest analysis for Greenyard

Following the latest results, Greenyard's twin analysts are now forecasting revenues of €4.61b in 2022. This would be a satisfactory 4.3% improvement in sales compared to the last 12 months. Earnings are expected to improve, with Greenyard forecast to report a statutory profit of €0.41 per share. Before this earnings report, the analysts had been forecasting revenues of €4.62b and earnings per share (EPS) of €0.34 in 2022. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the very substantial lift in earnings per share expectations following these results.

The consensus price target rose 12% to €10.67, suggesting that higher earnings estimates flow through to the stock's valuation as well.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Greenyard's growth to accelerate, with the forecast 4.3% annualised growth to the end of 2022 ranking favourably alongside historical growth of 1.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 6.5% annually. So it's clear that despite the acceleration in growth, Greenyard is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Greenyard following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Greenyard's revenues are expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

Plus, you should also learn about the 4 warning signs we've spotted with Greenyard (including 1 which is a bit unpleasant) .

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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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