Stock Analysis

Rémy Cointreau SA (EPA:RCO) Yearly Results: Here's What Analysts Are Forecasting For This Year

ENXTPA:RCO
Source: Shutterstock

Shareholders might have noticed that Rémy Cointreau SA (EPA:RCO) filed its yearly result this time last week. The early response was not positive, with shares down 4.0% to €81.75 in the past week. Rémy Cointreau reported in line with analyst predictions, delivering revenues of €1.2b and statutory earnings per share of €3.64, 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 Rémy Cointreau after the latest results.

View our latest analysis for Rémy Cointreau

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ENXTPA:RCO Earnings and Revenue Growth June 11th 2024

Taking into account the latest results, Rémy Cointreau's 18 analysts currently expect revenues in 2025 to be €1.21b, approximately in line with the last 12 months. Statutory earnings per share are predicted to increase 3.8% to €3.76. Before this earnings report, the analysts had been forecasting revenues of €1.23b and earnings per share (EPS) of €3.74 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €107. 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 Rémy Cointreau, with the most bullish analyst valuing it at €138 and the most bearish at €74.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Rémy Cointreau's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.0% growth on an annualised basis. This is compared to a historical growth rate of 7.0% 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 4.5% per year. Factoring in the forecast slowdown in growth, it seems obvious that Rémy Cointreau 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 €107, with the latest estimates not enough to have an impact on their price targets.

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 forecasts for Rémy Cointreau going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Rémy Cointreau you should know about.

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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.