Fevertree Drinks PLC Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Fevertree Drinks PLC (LON:FEVR) just released its latest interim report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at UK£173m, statutory earnings missed forecasts by an incredible 35%, coming in at just UK£0.065 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Fevertree Drinks

Taking into account the latest results, the most recent consensus for Fevertree Drinks from 15 analysts is for revenues of UK£376.1m in 2024. If met, it would imply an okay 4.0% increase on its revenue over the past 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of UK£383.9m and earnings per share (EPS) of UK£0.28 in 2024. So we can see that while the consensus made a minor downgrade to revenue estimates, it no longer provides an earnings per share estimate. This suggests that the market is now more focused on revenue after the latest result.

We'd also point out that thatthe analysts have made no major changes to their price target of UK£10.86. 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 Fevertree Drinks analyst has a price target of UK£15.00 per share, while the most pessimistic values it at UK£6.50. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. We can infer from the latest estimates that forecasts expect a continuation of Fevertree Drinks'historical trends, as the 8.1% annualised revenue growth to the end of 2024 is roughly in line with the 9.3% 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 4.2% per year. So although Fevertree Drinks is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The clear low-light was that the analysts cut their forecast revenue estimates for Fevertree Drinks next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at UK£10.86, with the latest estimates not enough to have an impact on their price targets.

We have estimates for Fevertree Drinks from its 15 analysts out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Fevertree Drinks (1 makes us a bit uncomfortable!) that we have uncovered.

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

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.