BellRing Brands, Inc. Just Missed EPS By 17%: Here's What Analysts Think Will Happen Next

There's been a notable change in appetite for BellRing Brands, Inc. (NYSE:BRBR) shares in the week since its second-quarter report, with the stock down 19% to US$62.73. Revenues were in line with forecasts, at US$588m, although statutory earnings per share came in 17% below what the analysts expected, at US$0.45 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 BellRing Brands after the latest results.

We've discovered 3 warning signs about BellRing Brands. View them for free.

Following the latest results, BellRing Brands' 15 analysts are now forecasting revenues of US$2.30b in 2025. This would be an okay 5.1% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be US$2.19, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$2.32b and earnings per share (EPS) of US$2.28 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

Check out our latest analysis for BellRing Brands

The average price target fell 6.3% to US$79.44, with reduced earnings forecasts clearly tied to a lower valuation estimate. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on BellRing Brands, with the most bullish analyst valuing it at US$92.00 and the most bearish at US$71.00 per share. This is a very narrow spread of estimates, implying either that BellRing Brands is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. It's pretty clear that there is an expectation that BellRing Brands' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 10% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.0% per year. Even after the forecast slowdown in growth, it seems obvious that BellRing Brands is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still 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 BellRing Brands' 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 BellRing Brands going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for BellRing Brands (2 are significant!) that you should be aware of.

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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.