US Foods Holding Corp. (NYSE:USFD) Just Released Its Full-Year Earnings: Here's What Analysts Think
Investors in US Foods Holding Corp. (NYSE:USFD) had a good week, as its shares rose 6.3% to close at US$49.58 following the release of its full-year results. The result was positive overall - although revenues of US$36b were in line with what the analysts predicted, US Foods Holding surprised by delivering a statutory profit of US$2.02 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on US Foods Holding after the latest results.
View our latest analysis for US Foods Holding
Taking into account the latest results, the consensus forecast from US Foods Holding's twelve analysts is for revenues of US$37.8b in 2024. This reflects a satisfactory 6.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 29% to US$2.62. In the lead-up to this report, the analysts had been modelling revenues of US$37.4b and earnings per share (EPS) of US$2.67 in 2024. So it's pretty clear that, although the 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$54.70. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic US Foods Holding analyst has a price target of US$62.00 per share, while the most pessimistic values it at US$45.00. 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 would highlight that US Foods Holding's revenue growth is expected to slow, with the forecast 6.1% annualised growth rate until the end of 2024 being well below the historical 9.4% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.4% annually. So it's pretty clear that, while US Foods Holding's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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 US$54.70, 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 US Foods Holding going out to 2026, and you can see them free on our platform here..
It is also worth noting that we have found 2 warning signs for US Foods Holding that you need to take into consideration.
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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.
