Results: United Breweries Limited Beat Earnings Expectations And Analysts Now Have New Forecasts
United Breweries Limited (NSE:UBL) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 4.0% to hit ₹56b. United Breweries also reported a statutory profit of ₹5.12, which was an impressive 158% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, United Breweries' ten analysts currently expect revenues in 2027 to be ₹106.5b, approximately in line with the last 12 months. Statutory earnings per share are predicted to jump 29% to ₹23.60. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹101.8b and earnings per share (EPS) of ₹16.35 in 2027. So it seems there's been a definite increase in optimism about United Breweries' future following the latest results, with a massive increase in the earnings per share forecasts in particular.
See our latest analysis for United Breweries
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of ₹1,396, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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. Currently, the most bullish analyst values United Breweries at ₹1,751 per share, while the most bearish prices it at ₹1,120. 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.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 1.5% annualised decline to the end of 2027. That is a notable change from historical growth of 10% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 11% per year. It's pretty clear that United Breweries' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards United Breweries following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target held steady at ₹1,396, 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 Simply Wall St, we have a full range of analyst estimates for United Breweries going out to 2029, and you can see them free on our platform here..
You still need to take note of risks, for example - United Breweries has 1 warning sign we think you should be aware of.
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