Puig Brands, S.A. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Puig Brands, S.A. (BME:PUIG) shareholders are probably feeling a little disappointed, since its shares fell 2.3% to €17.81 in the week after its latest annual results. Revenues were €4.8b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of €0.98 were also better than expected, beating analyst predictions by 10%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Puig Brands

Following the latest results, Puig Brands' twelve analysts are now forecasting revenues of €5.14b in 2025. This would be a satisfactory 7.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 14% to €1.07. Yet prior to the latest earnings, the analysts had been anticipated revenues of €5.15b and earnings per share (EPS) of €1.09 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at €25.03, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. There are some variant perceptions on Puig Brands, with the most bullish analyst valuing it at €32.00 and the most bearish at €22.00 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Puig Brands' revenue growth is expected to slow, with the forecast 7.3% annualised growth rate until the end of 2025 being well below the historical 19% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.8% per year. Even after the forecast slowdown in growth, it seems obvious that Puig Brands is also expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Puig Brands. 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 Puig Brands. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Puig Brands going out to 2027, and you can see them free on our platform here..

You can also see whether Puig Brands is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.