Ebro Foods, S.A. (BME:EBRO) Just Released Its Half-Year Results And Analysts Are Updating Their Estimates

Last week saw the newest interim earnings release from Ebro Foods, S.A. (BME:EBRO), an important milestone in the company's journey to build a stronger business. Results look mixed - while revenue fell marginally short of analyst estimates at €1.5b, statutory earnings were in line with expectations, at €1.35 per share. 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, Ebro Foods' eight analysts currently expect revenues in 2025 to be €3.13b, approximately in line with the last 12 months. Statutory earnings per share are predicted to accumulate 7.3% to €1.37. In the lead-up to this report, the analysts had been modelling revenues of €3.15b and earnings per share (EPS) of €1.36 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.

See our latest analysis for Ebro Foods

There were no changes to revenue or earnings estimates or the price target of €20.73, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Ebro Foods, with the most bullish analyst valuing it at €22.05 and the most bearish at €19.40 per share. 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.

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. We would highlight that Ebro Foods' revenue growth is expected to slow, with the forecast 2.2% annualised growth rate until the end of 2025 being well below the historical 4.3% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.5% annually. Factoring in the forecast slowdown in growth, it seems obvious that Ebro Foods is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at €20.73, with the latest estimates not enough to have an impact on their price targets.

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

However, before you get too enthused, we've discovered 1 warning sign for Ebro Foods that 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.