Earnings Update: Jerónimo Martins, SGPS, S.A. (ELI:JMT) Just Reported Its Full-Year Results And Analysts Are Updating Their Forecasts

Shareholders might have noticed that Jerónimo Martins, SGPS, S.A. (ELI:JMT) filed its annual result this time last week. The early response was not positive, with shares down 7.4% to €20.12 in the past week. Results were roughly in line with estimates, with revenues of €31b and statutory earnings per share of €1.20. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Jerónimo Martins SGPS after the latest results.

Check out our latest analysis for Jerónimo Martins SGPS

Following the latest results, Jerónimo Martins SGPS' 18 analysts are now forecasting revenues of €34.0b in 2024. This would be a solid 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 5.1% to €1.26. Before this earnings report, the analysts had been forecasting revenues of €33.7b and earnings per share (EPS) of €1.27 in 2024. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €24.75. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Jerónimo Martins SGPS, with the most bullish analyst valuing it at €29.00 and the most bearish at €18.50 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. We can infer from the latest estimates that forecasts expect a continuation of Jerónimo Martins SGPS'historical trends, as the 11% annualised revenue growth to the end of 2024 is roughly in line with the 11% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 4.9% per year. So it's pretty clear that Jerónimo Martins SGPS is forecast to grow substantially faster than its industry.

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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue 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 in mind, we wouldn't be too quick to come to a conclusion on Jerónimo Martins SGPS. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Jerónimo Martins SGPS going out to 2026, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Jerónimo Martins SGPS that you need to be mindful of.

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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.