Analysts Are Updating Their Coca-Cola Europacific Partners PLC (AMS:CCEP) Estimates After Its Yearly Results
It's been a good week for Coca-Cola Europacific Partners PLC (AMS:CCEP) shareholders, because the company has just released its latest full-year results, and the shares gained 3.2% to €65.30. Coca-Cola Europacific Partners reported in line with analyst predictions, delivering revenues of €18b and statutory earnings per share of €3.63, suggesting the business is executing well and in line with its plan. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Coca-Cola Europacific Partners after the latest results.
Check out our latest analysis for Coca-Cola Europacific Partners
After the latest results, the 15 analysts covering Coca-Cola Europacific Partners are now predicting revenues of €20.4b in 2024. If met, this would reflect a decent 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 7.3% to €3.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of €20.1b and earnings per share (EPS) of €4.02 in 2024. 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.
It might be a surprise to learn that the consensus price target was broadly unchanged at €68.77, 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. The most optimistic Coca-Cola Europacific Partners analyst has a price target of €79.00 per share, while the most pessimistic values it at €54.00. 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.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Coca-Cola Europacific Partners'historical trends, as the 11% annualised revenue growth to the end of 2024 is roughly in line with the 12% 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 4.6% per year. So it's pretty clear that Coca-Cola Europacific Partners is forecast to grow substantially faster than its 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 held steady at €68.77, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Coca-Cola Europacific Partners going out to 2026, and you can see them free on our platform here..
We don't want to rain on the parade too much, but we did also find 2 warning signs for Coca-Cola Europacific Partners that you need to be mindful 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.
