Sanford Limited Just Beat EPS By 19%: Here's What Analysts Think Will Happen Next

Shareholders of Sanford Limited (NZSE:SAN) will be pleased this week, given that the stock price is up 13% to NZ$7.03 following its latest annual results. It looks like a credible result overall - although revenues of NZ$584m were in line with what the analysts predicted, Sanford surprised by delivering a statutory profit of NZ$0.68 per share, a notable 19% above expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Following last week's earnings report, Sanford's two analysts are forecasting 2026 revenues to be NZ$584.7m, approximately in line with the last 12 months. Statutory earnings per share are forecast to dip 3.8% to NZ$0.66 in the same period. Before this earnings report, the analysts had been forecasting revenues of NZ$586.9m and earnings per share (EPS) of NZ$0.60 in 2026. So the consensus seems to have become somewhat more optimistic on Sanford's earnings potential following these results.

Check out our latest analysis for Sanford

The consensus price target rose 19% to NZ$7.55, suggesting that higher earnings estimates flow through to the stock's valuation as well.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Sanford's revenue growth is expected to slow, with the forecast 0.09% annualised growth rate until the end of 2026 being well below the historical 5.1% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.9% 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 Sanford.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Sanford's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Sanford's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Sanford going out as far as 2028, and you can see them free on our platform here.

You can also view our analysis of Sanford's balance sheet, and whether we think Sanford is carrying too much debt, for free on our platform here.

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.