Stock Analysis

Here's What Analysts Are Forecasting For Ebro Foods, S.A. (BME:EBRO) After Its Third-Quarter Results

BME:EBRO
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Last week saw the newest quarterly earnings release from Ebro Foods, S.A. (BME:EBRO), an important milestone in the company's journey to build a stronger business. Ebro Foods reported in line with analyst predictions, delivering revenues of €767m and statutory earnings per share of €1.22, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Ebro Foods

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BME:EBRO Earnings and Revenue Growth March 1st 2025

Taking into account the latest results, the current consensus from Ebro Foods' seven analysts is for revenues of €3.26b in 2025. This would reflect a credible 3.7% increase on its revenue over the past 12 months. In the lead-up to this report, the analysts had been modelling revenues of €3.20b and earnings per share (EPS) of €1.33 in 2025. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

There's been no real change to the consensus price target of €20.78, with Ebro Foods seemingly executing in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Ebro Foods at €22.00 per share, while the most bearish prices it at €19.30. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Ebro Foods is an easy business to forecast or the the analysts are all using similar assumptions.

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. It's pretty clear that there is an expectation that Ebro Foods' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.0% growth on an annualised basis. This is compared to a historical growth rate of 4.0% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.2% per year. 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 clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. 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.

At least one of Ebro Foods' seven analysts has provided estimates out to 2027, which can be seen for 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.

Valuation is complex, but we're here to simplify it.

Discover if Ebro Foods might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.