JDE Peet's N.V. Just Missed EPS By 39%: Here's What Analysts Think Will Happen Next
As you might know, JDE Peet's N.V. (AMS:JDEP) recently reported its full-year numbers. It looks like a pretty bad result, all things considered. Although revenues of €8.2b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 39% to hit €0.75 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for JDE Peet's
Taking into account the latest results, the current consensus from JDE Peet's' eleven analysts is for revenues of €8.68b in 2024. This would reflect a reasonable 5.9% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 93% to €1.46. Before this earnings report, the analysts had been forecasting revenues of €8.58b and earnings per share (EPS) of €1.54 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
The average price target fell 6.5% to €24.98, with reduced earnings forecasts clearly tied to a lower valuation estimate. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic JDE Peet's analyst has a price target of €30.50 per share, while the most pessimistic values it at €21.50. 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.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 5.9% growth on an annualised basis. That is in line with its 5.5% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 5.9% per year. It's clear that while JDE Peet's' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.
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 real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of JDE Peet's' future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on JDE Peet's. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple JDE Peet's analysts - going out to 2026, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with JDE Peet's .
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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.
