LVMH Moët Hennessy - Louis Vuitton, Société Européenne (EPA:MC) Half-Year Results: Here's What Analysts Are Forecasting For This Year

Investors in LVMH Moët Hennessy - Louis Vuitton, Société Européenne (EPA:MC) had a good week, as its shares rose 4.2% to close at €489 following the release of its half-year results. Results were roughly in line with estimates, with revenues of €40b and statutory earnings per share of €25.12. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following last week's earnings report, LVMH Moët Hennessy - Louis Vuitton Société Européenne's 22 analysts are forecasting 2025 revenues to be €81.2b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be €21.70, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of €82.1b and earnings per share (EPS) of €22.18 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

Check out our latest analysis for LVMH Moët Hennessy - Louis Vuitton Société Européenne

It might be a surprise to learn that the consensus price target was broadly unchanged at €561, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic LVMH Moët Hennessy - Louis Vuitton Société Européenne analyst has a price target of €720 per share, while the most pessimistic values it at €450. 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 LVMH Moët Hennessy - Louis Vuitton Société Européenne shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 4.0% annualised decline to the end of 2025. That is a notable change from historical growth of 13% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.2% per year. It's pretty clear that LVMH Moët Hennessy - Louis Vuitton Société Européenne's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment 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.

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

It is also worth noting that we have found 1 warning sign for LVMH Moët Hennessy - Louis Vuitton Société Européenne that you need to take into consideration.

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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.