Utz Brands, Inc. Just Missed EPS By 24%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that Utz Brands, Inc. (NYSE:UTZ) released its second-quarter result to the market. The early response was not positive, with shares down 3.2% to US$13.64 in the past week. It looks like a pretty bad result, all things considered. Although revenues of US$367m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 24% to hit US$0.12 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Utz Brands after the latest results.

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Taking into account the latest results, Utz Brands' ten analysts currently expect revenues in 2025 to be US$1.44b, approximately in line with the last 12 months. Statutory earnings per share are predicted to soar 224% to US$0.68. Before this earnings report, the analysts had been forecasting revenues of US$1.43b and earnings per share (EPS) of US$0.78 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

Check out our latest analysis for Utz Brands

The consensus price target held steady at US$17.10, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Utz Brands, with the most bullish analyst valuing it at US$20.00 and the most bearish at US$14.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Utz Brands shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Utz Brands' revenue growth is expected to slow, with the forecast 2.4% annualised growth rate until the end of 2025 being well below the historical 9.0% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.2% annually. 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 biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Utz Brands. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 Utz Brands going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - Utz Brands has 2 warning signs (and 1 which can't be ignored) 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.