Americana Restaurants International PLC Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
Americana Restaurants International PLC (ADX:AMR) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues were in line with forecasts, at US$644m, although statutory earnings per share came in 11% below what the analysts expected, at US$0.0071 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following the latest results, Americana Restaurants International's ten analysts are now forecasting revenues of US$2.52b in 2025. This would be a satisfactory 6.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 27% to US$0.026. Before this earnings report, the analysts had been forecasting revenues of US$2.52b and earnings per share (EPS) of US$0.025 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
Check out our latest analysis for Americana Restaurants International
There's been no major changes to the consensus price target of د.إ2.83, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 Americana Restaurants International, with the most bullish analyst valuing it at د.إ3.49 and the most bearish at د.إ2.26 per share. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that Americana Restaurants International is forecast to grow faster in the future than it has in the past, with revenues expected to display 14% annualised growth until the end of 2025. If achieved, this would be a much better result than the 1.6% annual decline over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 11% annually. So while Americana Restaurants International's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Americana Restaurants International's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Americana Restaurants International. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Americana Restaurants International analysts - going out to 2027, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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