JDE Peet's N.V. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Published
August 07, 2022
ENXTAM:JDEP
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JDE Peet's N.V. (AMS:JDEP) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 2.8% to hit €3.9b. JDE Peet's also reported a statutory profit of €1.02, which was an impressive 79% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for JDE Peet's

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ENXTAM:JDEP Earnings and Revenue Growth August 7th 2022

Taking into account the latest results, the current consensus from JDE Peet's' 13 analysts is for revenues of €8.29b in 2022, which would reflect a solid 18% increase on its sales over the past 12 months. Statutory earnings per share are predicted to increase 7.9% to €1.64. Yet prior to the latest earnings, the analysts had been anticipated revenues of €7.97b and earnings per share (EPS) of €1.44 in 2022. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a nice increase in earnings per share in particular.

Despite these upgrades,the analysts have not made any major changes to their price target of €32.46, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on JDE Peet's, with the most bullish analyst valuing it at €46.47 and the most bearish at €25.00 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting JDE Peet's' growth to accelerate, with the forecast 40% annualised growth to the end of 2022 ranking favourably alongside historical growth of 5.3% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.6% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect JDE Peet's to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around JDE Peet's' earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster 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 estimates - from multiple JDE Peet's analysts - going out to 2024, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for JDE Peet's that we have uncovered.

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