Ricegrowers Limited Just Recorded A 13% Revenue Beat: Here's What Analysts Think
Ricegrowers Limited (ASX:SGLLV) just released its latest interim results and things are looking bullish. Ricegrowers beat expectations, with revenue hitting AU$919m (13% ahead of estimates) and EPS reaching AU$0.46 (a 4.1% beat). 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Ricegrowers
Taking into account the latest results, the consensus forecast from Ricegrowers' twin analysts is for revenues of AU$1.85b in 2024. This reflects a credible 2.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to decrease 3.3% to AU$0.98 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of AU$1.74b and earnings per share (EPS) of AU$1.03 in 2024. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a credible to revenue, the consensus also made a minor downgrade to its earnings per share forecasts.
The consensus price target was unchanged at AU$9.23, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Ricegrowers' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 6.0% growth on an annualised basis. This is compared to a historical growth rate of 8.8% 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) 4.5% per year. Even after the forecast slowdown in growth, it seems obvious that Ricegrowers 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at AU$9.23, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
You still need to take note of risks, for example - Ricegrowers has 1 warning sign we think 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.
