Whitbread plc (LON:WTB) Just Released Its Half-Yearly Earnings: Here's What Analysts Think

It's been a mediocre week for Whitbread plc (LON:WTB) shareholders, with the stock dropping 11% to UK£29.02 in the week since its latest interim results. Results were roughly in line with estimates, with revenues of UK£1.5b and statutory earnings per share of UK£1.41. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following last week's earnings report, Whitbread's 16 analysts are forecasting 2026 revenues to be UK£2.91b, approximately in line with the last 12 months. Per-share earnings are expected to leap 36% to UK£1.98. Before this earnings report, the analysts had been forecasting revenues of UK£2.88b and earnings per share (EPS) of UK£2.00 in 2026. 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.

Check out our latest analysis for Whitbread

The analysts reconfirmed their price target of UK£33.86, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Whitbread at UK£40.50 per share, while the most bearish prices it at UK£26.50. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Whitbread's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 0.5% growth on an annualised basis. This is compared to a historical growth rate of 23% 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 6.2% annually. Factoring in the forecast slowdown in growth, it seems obvious that Whitbread 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 Whitbread's revenue is expected to perform worse than the wider industry. The consensus price target held steady at UK£33.86, 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 Whitbread going out to 2028, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Whitbread that you need to be mindful of.

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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.