House Foods Group Inc. Just Recorded A 20% EPS Beat: Here's What Analysts Are Forecasting Next

Last week saw the newest third-quarter earnings release from House Foods Group Inc. (TSE:2810), an important milestone in the company's journey to build a stronger business. Revenues JP¥84b disappointed slightly, at2.7% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of JP¥70.45 coming in 20% above what was anticipated. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for House Foods Group

Taking into account the latest results, the current consensus from House Foods Group's four analysts is for revenues of JP¥330.5b in 2026. This would reflect a satisfactory 5.5% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 7.8% to JP¥154. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥329.6b and earnings per share (EPS) of JP¥156 in 2026. 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.

The analysts reconfirmed their price target of JP¥3,165, showing that the business is executing well and in line with expectations. 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 House Foods Group, with the most bullish analyst valuing it at JP¥3,350 and the most bearish at JP¥2,800 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting House Foods Group is an easy business to forecast or the the analysts are all using similar assumptions.

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. The analysts are definitely expecting House Foods Group's growth to accelerate, with the forecast 4.4% annualised growth to the end of 2026 ranking favourably alongside historical growth of 1.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.0% annually. House Foods Group is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 House Foods Group going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - House Foods Group has 1 warning sign we think you should be aware of.

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

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.