Jerónimo Martins, SGPS, S.A. Just Recorded A 7.5% EPS Beat: Here's What Analysts Are Forecasting Next

Jerónimo Martins, SGPS, S.A. (ELI:JMT) shareholders are probably feeling a little disappointed, since its shares fell 3.8% to €20.54 in the week after its latest interim results. Jerónimo Martins SGPS reported €17b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €0.43 beat expectations, being 7.5% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the current consensus from Jerónimo Martins SGPS' 16 analysts is for revenues of €36.1b in 2025. This would reflect a credible 4.4% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 9.7% to €1.07. In the lead-up to this report, the analysts had been modelling revenues of €36.1b and earnings per share (EPS) of €1.09 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for Jerónimo Martins SGPS

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €25.24. 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. Currently, the most bullish analyst values Jerónimo Martins SGPS at €29.00 per share, while the most bearish prices it at €22.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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 would highlight that Jerónimo Martins SGPS' revenue growth is expected to slow, with the forecast 9.1% annualised growth rate until the end of 2025 being well below the historical 14% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.7% per year. So it's pretty clear that, while Jerónimo Martins SGPS' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share 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.

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 estimates - from multiple Jerónimo Martins SGPS analysts - going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.