Kerry Group plc (ISE:KRZ) Yearly Results: Here's What Analysts Are Forecasting For This Year

Kerry Group plc (ISE:KRZ) shareholders are probably feeling a little disappointed, since its shares fell 4.4% to €76.62 in the week after its latest yearly results. Revenues came in 2.9% below expectations, at €8.0b. Statutory earnings per share were relatively better off, with a per-share profit of €4.10 being roughly in line with analyst estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Kerry Group

Following last week's earnings report, Kerry Group's twelve analysts are forecasting 2024 revenues to be €8.14b, approximately in line with the last 12 months. Per-share earnings are expected to increase 3.4% to €4.31. In the lead-up to this report, the analysts had been modelling revenues of €8.38b and earnings per share (EPS) of €4.36 in 2024. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The consensus has reconfirmed its price target of €96.09, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Kerry Group's market value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Kerry Group at €113 per share, while the most bearish prices it at €84.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Kerry Group's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 1.5% growth on an annualised basis. This is compared to a historical growth rate of 5.3% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.2% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Kerry Group.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Yet - earnings are more important to the intrinsic value of the business. The consensus price target held steady at €96.09, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Kerry Group going out to 2026, and you can see them free on our platform here.

It might also be worth considering whether Kerry Group's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.