Analysts Have Made A Financial Statement On Viva Wine Group AB's (STO:VIVA) Yearly Report

It's been a good week for Viva Wine Group AB (STO:VIVA) shareholders, because the company has just released its latest annual results, and the shares gained 8.9% to kr41.50. Results were roughly in line with estimates, with revenues of kr4.2b and statutory earnings per share of kr1.92. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

See our latest analysis for Viva Wine Group

Taking into account the latest results, the consensus forecast from Viva Wine Group's solitary analyst is for revenues of kr4.45b in 2025. This reflects an okay 5.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 21% to kr2.32. Before this earnings report, the analyst had been forecasting revenues of kr4.38b and earnings per share (EPS) of kr2.52 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analyst did make a minor downgrade to their earnings per share forecasts.

The consensus price target held steady at kr52.00, with the analyst seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

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. It's pretty clear that there is an expectation that Viva Wine Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.4% growth on an annualised basis. This is compared to a historical growth rate of 9.7% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.0% annually. So it's pretty clear that, while Viva Wine Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Viva Wine Group. 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 Viva Wine Group. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Viva Wine Group going out as far as 2027, 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 Viva Wine Group that we have uncovered.

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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.