Analysts Are Updating Their Unilever PLC (LON:ULVR) Estimates After Its Annual Results

Investors in Unilever PLC (LON:ULVR) had a good week, as its shares rose 3.6% to close at UK£40.06 following the release of its yearly results. The result was positive overall - although revenues of €60b were in line with what the analysts predicted, Unilever surprised by delivering a statutory profit of €2.56 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Unilever

After the latest results, the 20 analysts covering Unilever are now predicting revenues of €61.0b in 2024. If met, this would reflect an okay 2.3% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be €2.58, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €61.4b and earnings per share (EPS) of €2.55 in 2024. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at UK£41.40. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Unilever analyst has a price target of UK£50.02 per share, while the most pessimistic values it at UK£34.02. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Unilever shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Unilever's past performance and to peers in the same industry. We would highlight that Unilever's revenue growth is expected to slow, with the forecast 2.3% annualised growth rate until the end of 2024 being well below the historical 4.1% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.6% annually. Factoring in the forecast slowdown in growth, it seems obvious that Unilever 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Unilever 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 Unilever 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.