Results: Nomad Foods Limited Beat Earnings Expectations And Analysts Now Have New Forecasts

As you might know, Nomad Foods Limited (NYSE:NOMD) recently reported its quarterly numbers. It looks like a credible result overall - although revenues of €753m were what the analysts expected, Nomad Foods surprised by delivering a (statutory) profit of €0.43 per share, an impressive 22% above 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Nomad Foods

After the latest results, the seven analysts covering Nomad Foods are now predicting revenues of €3.14b in 2024. If met, this would reflect a satisfactory 2.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 15% to €1.47. Before this earnings report, the analysts had been forecasting revenues of €3.14b and earnings per share (EPS) of €1.63 in 2024. 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 analysts did make a small dip in their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$24.54, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Nomad Foods at US$27.95 per share, while the most bearish prices it at US$20.97. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 5.4% growth on an annualised basis. That is in line with its 6.5% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.1% per year. So it's pretty clear that Nomad Foods is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Nomad Foods. Happily, there were no major changes to revenue forecasts, with the business still 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Nomad Foods going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Nomad Foods has 2 warning signs (and 1 which is a bit concerning) we think you should know about.

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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.