Stock Analysis

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

ENXTPA:RCO
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Last week saw the newest full-year earnings release from Rémy Cointreau SA (EPA:RCO), an important milestone in the company's journey to build a stronger business. Results were roughly in line with estimates, with revenues of €1.2b and statutory earnings per share of €3.64. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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.

See our latest analysis for Rémy Cointreau

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ENXTPA:RCO Earnings and Revenue Growth June 29th 2024

Following last week's earnings report, Rémy Cointreau's 18 analysts are forecasting 2025 revenues to be €1.20b, approximately in line with the last 12 months. Per-share earnings are expected to accumulate 2.1% to €3.70. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.20b and earnings per share (EPS) of €3.68 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of €107, showing that the business is executing well and in line with expectations. 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. The most optimistic Rémy Cointreau analyst has a price target of €128 per share, while the most pessimistic values it at €74.00. 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.

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 Rémy Cointreau's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.5% growth on an annualised basis. This is compared to a historical growth rate of 7.0% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.4% annually. 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 important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Rémy Cointreau's revenue is expected to 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.

Even so, be aware that Rémy Cointreau is showing 1 warning sign in our investment analysis , you should know about...

Valuation is complex, but we're helping make it simple.

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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.

Valuation is complex, but we're helping make it simple.

Find out whether Rémy Cointreau is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com