Earnings Release: Here's Why Analysts Cut Their Vranken-Pommery Monopole Société Anonyme (EPA:VRAP) Price Target To €16.75

Last week, you might have seen that Vranken-Pommery Monopole Société Anonyme (EPA:VRAP) released its half-year result to the market. The early response was not positive, with shares down 3.1% to €14.30 in the past week. It was a credible result overall, with revenues of €108m and statutory earnings per share of €0.69 both in line with analyst estimates, showing that Vranken-Pommery Monopole Société Anonyme is executing in line with expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Vranken-Pommery Monopole Société Anonyme

Following the latest results, Vranken-Pommery Monopole Société Anonyme's two analysts are now forecasting revenues of €341.0m in 2024. This would be a modest 3.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 55% to €0.91. In the lead-up to this report, the analysts had been modelling revenues of €345.3m and earnings per share (EPS) of €0.94 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target fell 5.6% to €16.75, with the analysts clearly linking lower forecast earnings to the performance of the stock price.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Vranken-Pommery Monopole Société Anonyme's past performance and to peers in the same industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 6.6% growth on an annualised basis. That is in line with its 6.1% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.3% per year. So it's pretty clear that Vranken-Pommery Monopole Société Anonyme is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Vranken-Pommery Monopole Société Anonyme. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Vranken-Pommery Monopole Société Anonyme's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Vranken-Pommery Monopole Société Anonyme going out as far as 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for Vranken-Pommery Monopole Société Anonyme you should be aware of, and 1 of them is potentially serious.

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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.