Ebro Foods, S.A. (BME:EBRO) Half-Year Results Just Came Out: Here's What Analysts Are Forecasting For This Year

It's been a good week for Ebro Foods, S.A. (BME:EBRO) shareholders, because the company has just released its latest interim results, and the shares gained 3.8% to €15.92. Ebro Foods reported in line with analyst predictions, delivering revenues of €1.6b and statutory earnings per share of €1.22, 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Ebro Foods after the latest results.

Check out our latest analysis for Ebro Foods

Following last week's earnings report, Ebro Foods' seven analysts are forecasting 2024 revenues to be €3.15b, approximately in line with the last 12 months. Statutory earnings per share are forecast to shrink 5.2% to €1.25 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €3.14b and earnings per share (EPS) of €1.20 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of €20.49, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Ebro Foods at €21.30 per share, while the most bearish prices it at €19.40. This is a very narrow spread of estimates, implying either that Ebro Foods is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 2024 brings more of the same, according to the analysts, with revenue forecast to display 2.7% growth on an annualised basis. That is in line with its 3.2% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 4.1% annually. So it's pretty clear that Ebro Foods is expected to grow slower than similar companies in the same industry.

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 Ebro Foods following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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. We have estimates - from multiple Ebro Foods 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 - Ebro Foods has 1 warning sign we think 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.

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