BellRing Brands, Inc. Just Missed EPS By 8.4%: Here's What Analysts Think Will Happen Next

It's been a pretty great week for BellRing Brands, Inc. (NYSE:BRBR) shareholders, with its shares surging 11% to US$29.80 in the week since its latest annual results. It looks like the results were a bit of a negative overall. While revenues of US$2.3b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 8.4% to hit US$1.68 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the consensus forecast from BellRing Brands' 13 analysts is for revenues of US$2.43b in 2026. This reflects a satisfactory 5.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 19% to US$2.15. In the lead-up to this report, the analysts had been modelling revenues of US$2.51b and earnings per share (EPS) of US$2.25 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

Check out our latest analysis for BellRing Brands

It'll come as no surprise then, to learn that the analysts have cut their price target 17% to US$39.07. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on BellRing Brands, with the most bullish analyst valuing it at US$50.00 and the most bearish at US$28.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. We would highlight that BellRing Brands' revenue growth is expected to slow, with the forecast 5.1% annualised growth rate until the end of 2026 being well below the historical 17% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.4% annually. Factoring in the forecast slowdown in growth, it looks like BellRing Brands is forecast to grow at about the same rate as 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. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 BellRing Brands going out to 2028, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for BellRing Brands 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.