Stock Analysis

Viva Wine Group AB Just Recorded A 6.4% EPS Beat: Here's What Analysts Are Forecasting Next

Published
OM:VIVA

As you might know, Viva Wine Group AB (STO:VIVA) just kicked off its latest quarterly results with some very strong numbers. Results were good overall, with revenues beating analyst predictions by 2.6% to hit kr998m. Statutory earnings per share (EPS) came in at kr0.50, some 6.4% above whatthe analyst had expected. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Viva Wine Group

OM:VIVA Earnings and Revenue Growth November 23rd 2024

Taking into account the latest results, the most recent consensus for Viva Wine Group from solitary analyst is for revenues of kr4.38b in 2025. If met, it would imply a modest 6.5% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 96% to kr2.60. Yet prior to the latest earnings, the analyst had been anticipated revenues of kr4.33b and earnings per share (EPS) of kr2.56 in 2025. The consensus analyst doesn'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.

With the analyst reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 9.2% to kr51.00. It looks as though they previously had some doubts over whether the business would live up to their expectations.

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 5.1% growth on an annualised basis. This is compared to a historical growth rate of 10% over the past five years. Compare this to the 5 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.1% per year. Factoring in the forecast slowdown in growth, it looks like Viva Wine Group is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analyst reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

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 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Viva Wine Group that you should be aware 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.