Royal Unibrew A/S Just Missed EPS By 9.5%: Here's What Analysts Think Will Happen Next

As you might know, Royal Unibrew A/S (CPH:RBREW) last week released its latest first-quarter, and things did not turn out so great for shareholders. Royal Unibrew missed analyst forecasts, with revenues of kr.3.2b and statutory earnings per share (EPS) of kr.2.50, falling short by 4.5% and 9.5% respectively. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the consensus forecast from Royal Unibrew's eleven analysts is for revenues of kr.15.9b in 2025. This reflects a credible 5.9% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be kr.29.60, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of kr.16.0b and earnings per share (EPS) of kr.30.16 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

View our latest analysis for Royal Unibrew

The analysts reconfirmed their price target of kr.598, 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. The most optimistic Royal Unibrew analyst has a price target of kr.690 per share, while the most pessimistic values it at kr.460. 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 Royal Unibrew shareholders.

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. We would highlight that Royal Unibrew's revenue growth is expected to slow, with the forecast 8.0% annualised growth rate until the end of 2025 being well below the historical 17% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.9% annually. So it's pretty clear that, while Royal Unibrew's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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.

With that in mind, we wouldn't be too quick to come to a conclusion on Royal Unibrew. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Royal Unibrew analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Royal Unibrew .

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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.