Earnings Release: Here's Why Analysts Cut Their Westrock Coffee Company (NASDAQ:WEST) Price Target To US$10.20

It's been a sad week for Westrock Coffee Company (NASDAQ:WEST), who've watched their investment drop 13% to US$3.87 in the week since the company reported its quarterly result. Revenues came in 26% better than analyst models expected, at US$355m, although statutory losses ballooned 95% to US$0.20, which is much worse than what was forecast. 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 Westrock Coffee after the latest results.

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Taking into account the latest results, the consensus forecast from Westrock Coffee's five analysts is for revenues of US$1.29b in 2026. This reflects a solid 20% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Westrock Coffee forecast to report a statutory profit of US$0.068 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.27b and earnings per share (EPS) of US$0.19 in 2026. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.

See our latest analysis for Westrock Coffee

It might be a surprise to learn that the consensus price target fell 5.6% to US$10.20, with the analysts clearly linking lower forecast earnings to the performance of the stock price. 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. The most optimistic Westrock Coffee analyst has a price target of US$13.00 per share, while the most pessimistic values it at US$7.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Westrock Coffee's rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 8.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.2% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Westrock Coffee to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Westrock Coffee. 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. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Westrock Coffee's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Westrock Coffee going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether Westrock Coffee's debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.