Here's What Analysts Are Forecasting For United Breweries Limited (NSE:UBL) After Its First-Quarter Results

United Breweries Limited (NSE:UBL) missed earnings with its latest first-quarter results, disappointing overly-optimistic forecasters. United Breweries missed analyst forecasts, with revenues of ₹25b and statutory earnings per share (EPS) of ₹6.60, falling short by 3.9% and 2.9% respectively. 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 United Breweries

Taking into account the latest results, the current consensus from United Breweries' eight analysts is for revenues of ₹90.8b in 2025. This would reflect a notable 9.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 39% to ₹23.58. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹91.6b and earnings per share (EPS) of ₹25.08 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹1,938, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. There are some variant perceptions on United Breweries, with the most bullish analyst valuing it at ₹2,486 and the most bearish at ₹1,253 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that United Breweries' rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 8.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that United Breweries is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for United Breweries. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for United Breweries going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with United Breweries .

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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.

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