Lotus Bakeries NV (EBR:LOTB) Just Reported Annual Earnings And Analysts Are Lifting Their Estimates

Lotus Bakeries NV (EBR:LOTB) investors will be delighted, with the company turning in some strong numbers with its latest results. Results were good overall, with revenues beating analyst predictions by 4.8% to hit €1.1b. Statutory earnings per share (EPS) came in at €159, some 4.6% above whatthe analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Lotus Bakeries after the latest results.

View our latest analysis for Lotus Bakeries

After the latest results, the five analysts covering Lotus Bakeries are now predicting revenues of €1.17b in 2024. If met, this would reflect a decent 10% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 12% to €179. Before this earnings report, the analysts had been forecasting revenues of €1.09b and earnings per share (EPS) of €168 in 2024. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 7.5% to €8,438per share. 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 Lotus Bakeries at €9,000 per share, while the most bearish prices it at €7,500. This is a very narrow spread of estimates, implying either that Lotus Bakeries is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 10% growth on an annualised basis. That is in line with its 13% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.7% annually. It's clear that while Lotus Bakeries' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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 Lotus Bakeries following these results. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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. We have estimates - from multiple Lotus Bakeries analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Lotus Bakeries has 1 warning sign we think you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.