Analyst Estimates: Here's What Brokers Think Of Loblaw Companies Limited (TSE:L) After Its Third-Quarter Report

Investors in Loblaw Companies Limited (TSE:L) had a good week, as its shares rose 6.9% to close at CA$60.51 following the release of its quarterly results. Loblaw Companies reported in line with analyst predictions, delivering revenues of CA$19b and statutory earnings per share of CA$1.75, suggesting the business is executing well and in line with its plan. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the consensus forecast from Loblaw Companies' nine analysts is for revenues of CA$66.5b in 2026. This reflects a satisfactory 5.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to reduce 7.7% to CA$1.93 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$66.5b and earnings per share (EPS) of CA$1.91 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for Loblaw Companies

The analysts reconfirmed their price target of CA$61.25, showing that the business is executing well and in line with expectations. 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. Currently, the most bullish analyst values Loblaw Companies at CA$68.00 per share, while the most bearish prices it at CA$39.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Loblaw Companies shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 4.2% growth on an annualised basis. That is in line with its 4.2% annual 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 3.0% per year. So it's pretty clear that Loblaw Companies is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 Simply Wall St, we have a full range of analyst estimates for Loblaw Companies going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Loblaw Companies that you need to take into consideration.

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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.