Flow Beverage Corp. (TSE:FLOW) Just Reported Full-Year Earnings And Analysts Are Lifting Their Estimates

Flow Beverage Corp. (TSE:FLOW) missed earnings with its latest annual results, disappointing overly-optimistic forecasters. Revenues missed expectations somewhat, coming in at CA$47m, but statutory earnings fell catastrophically short, with a loss of CA$0.77 some 24% larger than what the analysts had predicted. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Flow Beverage

Following the latest results, Flow Beverage's two analysts are now forecasting revenues of CA$56.8m in 2024. This would be a sizeable 22% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 66% to CA$0.23. Before this latest report, the consensus had been expecting revenues of CA$52.1m and CA$0.34 per share in losses. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a very promising decrease in loss per share in particular.

The consensus price target fell 17%, to CA$1.55, suggesting that the analysts remain pessimistic on the company, despite the improved earnings and revenue outlook.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 22% growth on an annualised basis. That is in line with its 25% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.0% annually. So although Flow Beverage is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Flow Beverage going out as far as 2025, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 5 warning signs for Flow Beverage (2 are significant!) that you need to be mindful of.

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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.