US$11.40: That's What Analysts Think Westrock Coffee Company (NASDAQ:WEST) Is Worth After Its Latest Results

As you might know, Westrock Coffee Company (NASDAQ:WEST) last week released its latest third-quarter, and things did not turn out so great for shareholders. Revenues missed expectations somewhat, coming in at US$221m, but statutory earnings fell catastrophically short, with a loss of US$0.16 some 167% larger than what the analysts had predicted. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Westrock Coffee

Taking into account the latest results, the consensus forecast from Westrock Coffee's five analysts is for revenues of US$1.08b in 2025. This reflects a major 29% improvement in revenue compared to the last 12 months. Westrock Coffee is also expected to turn profitable, with statutory earnings of US$0.17 per share. Before this earnings report, the analysts had been forecasting revenues of US$1.15b and earnings per share (EPS) of US$0.17 in 2025. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The average price target was reduced 6.6% to US$11.40, with the lower revenue forecasts indicating negative sentiment towards Westrock Coffee, even though earnings forecasts were unchanged. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Westrock Coffee, with the most bullish analyst valuing it at US$13.00 and the most bearish at US$10.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Westrock Coffee's growth to accelerate, with the forecast 22% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.3% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.8% 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 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. They also downgraded Westrock Coffee's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Still, earnings are more important to the intrinsic value of the business. 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 in mind, we wouldn't be too quick to come to a conclusion on Westrock Coffee. 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 Westrock Coffee going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 3 warning signs for Westrock Coffee 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.