U.S. Markets closed

Earnings Miss: BellRing Brands, Inc. Missed EPS By 24% And Analysts Are Revising Their Forecasts

Simply Wall St

BellRing Brands, Inc. (NYSE:BRBR) came out with its first-quarter results last week, and we wanted to see how the business is performing and what top analysts think of the company following this report. It looks like a pretty bad result, all things considered. Although revenues of US$244m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 24% to hit US$0.15 per share. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what analysts are expecting for next year.

Check out our latest analysis for BellRing Brands

NYSE:BRBR Past and Future Earnings, February 8th 2020

Following the latest results, BellRing Brands's ten analysts are now forecasting revenues of US$1.03b in 2020. This would be a decent 12% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to plunge 80% to US$0.66 in the same period. Before this earnings report, analysts had been forecasting revenues of US$1.02b and earnings per share (EPS) of US$0.65 in 2020. So it's pretty clear that, although analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$23.50. 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 BellRing Brands, with the most bullish analyst valuing it at US$27.00 and the most bearish at US$20.00 per share. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.

It can be useful to take a broader overview by seeing how analyst forecasts compare, both to the BellRing Brands's past performance and to peers in the same market. It's clear from the latest estimates that BellRing Brands's rate of growth is expected to accelerate meaningfully, with forecast 12% revenue growth noticeably faster than its historical growth of 8.9%p.a. over the past year. Compare this with other companies in the same market, which are forecast to grow their revenue 6.3% next year. It seems obvious that, while the growth outlook is brighter than the recent past, analysts also expect BellRing Brands to grow faster than the wider market.

The Bottom Line

The most obvious conclusion from these results is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than the wider market. The consensus price target held steady at US$23.50, with the latest estimates not enough to have an impact on analysts' estimated valuations.

With that in mind, we wouldn't be too quick to come to a conclusion on BellRing Brands. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for BellRing Brands going out to 2022, and you can see them free on our platform here..

It might also be worth considering whether BellRing Brands's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.