UK£2.64: That's What Analysts Think B&M European Value Retail S.A. (LON:BME) Is Worth After Its Latest Results

B&M European Value Retail S.A. (LON:BME) last week reported its latest half-yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. B&M European Value Retail reported in line with analyst predictions, delivering revenues of UK£2.7b and statutory earnings per share of UK£0.32, suggesting the business is executing well and in line with its plan. 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.

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Taking into account the latest results, B&M European Value Retail's 16 analysts currently expect revenues in 2026 to be UK£5.77b, approximately in line with the last 12 months. Statutory earnings per share are forecast to drop 13% to UK£0.22 in the same period. Before this earnings report, the analysts had been forecasting revenues of UK£5.80b and earnings per share (EPS) of UK£0.26 in 2026. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.

See our latest analysis for B&M European Value Retail

It might be a surprise to learn that the consensus price target fell 9.6% to UK£2.64, with the analysts clearly linking lower forecast earnings to the performance of the stock price. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on B&M European Value Retail, with the most bullish analyst valuing it at UK£4.50 and the most bearish at UK£2.00 per share. 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.

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 B&M European Value Retail's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 3.3% growth on an annualised basis. This is compared to a historical growth rate of 5.1% 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 14% annually. Factoring in the forecast slowdown in growth, it seems obvious that B&M European Value Retail is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 B&M European Value Retail's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for B&M European Value Retail going out to 2028, and you can see them free on our platform here..

Plus, you should also learn about the 3 warning signs we've spotted with B&M European Value Retail .

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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.