Coca-Cola HBC AG Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Last week, you might have seen that Coca-Cola HBC AG (LON:CCH) released its interim result to the market. The early response was not positive, with shares down 5.3% to UK£26.84 in the past week. Revenues of €5.2b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at €1.04, missing estimates by 5.2%. 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.

View our latest analysis for Coca-Cola HBC

Taking into account the latest results, the current consensus from Coca-Cola HBC's twelve analysts is for revenues of €10.6b in 2024. This would reflect a reasonable 2.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 26% to €2.19. Yet prior to the latest earnings, the analysts had been anticipated revenues of €10.5b and earnings per share (EPS) of €2.17 in 2024. 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.

There were no changes to revenue or earnings estimates or the price target of UK£28.42, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Coca-Cola HBC at UK£31.89 per share, while the most bearish prices it at UK£23.42. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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 Coca-Cola HBC's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 4.7% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.4% annually. So it's pretty clear that, while Coca-Cola HBC's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 forecasts for Coca-Cola HBC going 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 Coca-Cola HBC that we have uncovered.

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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.