Results: Premium Brands Holdings Corporation Delivered A Surprise Loss And Now Analysts Have New Forecasts

Last week, you might have seen that Premium Brands Holdings Corporation (TSE:PBH) released its third-quarter result to the market. The early response was not positive, with shares down 6.6% to CA$88.77 in the past week. The results don't look great, especially considering that the analysts had been forecasting a profit and Premium Brands Holdings delivered a statutory loss of CA$0.04 per share. Revenues of CA$2.0b did beat expectations by 4.7% though. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the current consensus from Premium Brands Holdings' eleven analysts is for revenues of CA$8.23b in 2026. This would reflect a notable 14% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 267% to CA$5.43. Before this earnings report, the analysts had been forecasting revenues of CA$8.02b and earnings per share (EPS) of CA$5.81 in 2026. So it's pretty clear consensus is mixed on Premium Brands Holdings after the latest results; whilethe analysts lifted revenue numbers, they also administered a minor downgrade to per-share earnings expectations.

See our latest analysis for Premium Brands Holdings

There's been no major changes to the price target of CA$116, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. 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. There are some variant perceptions on Premium Brands Holdings, with the most bullish analyst valuing it at CA$145 and the most bearish at CA$99.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 11% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.2% annually. So it's pretty clear that Premium Brands Holdings is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, they also upgraded their revenue estimates, and are forecasting them 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Premium Brands Holdings analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Premium Brands Holdings (2 are significant) you should be aware 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.