Results: Utz Brands, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

There's been a notable change in appetite for Utz Brands, Inc. (NYSE:UTZ) shares in the week since its quarterly report, with the stock down 11% to US$11.91. Revenues were US$352m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.09, an impressive 44% ahead of estimates. Following the result, the analysts have 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following last week's earnings report, Utz Brands' eleven analysts are forecasting 2025 revenues to be US$1.43b, approximately in line with the last 12 months. Per-share earnings are expected to jump 126% to US$0.72. In the lead-up to this report, the analysts had been modelling revenues of US$1.43b and earnings per share (EPS) of US$0.69 in 2025. So the consensus seems to have become somewhat more optimistic on Utz Brands' earnings potential following these results.

Check out our latest analysis for Utz Brands

The consensus price target was unchanged at US$17.14, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Utz Brands analyst has a price target of US$20.00 per share, while the most pessimistic values it at US$13.50. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Utz Brands' revenue growth is expected to slow, with the forecast 1.6% annualised growth rate until the end of 2025 being well below the historical 9.6% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.3% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Utz Brands.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Utz Brands following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$17.14, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Utz Brands going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 3 warning signs for Utz Brands (1 is a bit concerning!) that you need to take into consideration.

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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.