Vranken-Pommery Monopole Société Anonyme (EPA:VRAP) Just Reported, And Analysts Assigned A €19.00 Price Target

Simply Wall St · 09/15/2023 04:05

Vranken-Pommery Monopole Société Anonyme (EPA:VRAP) came out with its half-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results look mixed - while revenue fell marginally short of analyst estimates at €118m, statutory earnings were in line with expectations, at €1.14 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Vranken-Pommery Monopole Société Anonyme

ENXTPA:VRAP Earnings and Revenue Growth September 15th 2023

After the latest results, the two analysts covering Vranken-Pommery Monopole Société Anonyme are now predicting revenues of €352.0m in 2023. If met, this would reflect an okay 3.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 15% to €1.33. Before this earnings report, the analysts had been forecasting revenues of €350.0m and earnings per share (EPS) of €0.98 in 2023. Although the revenue estimates have not really changed, we can see there's been a very substantial lift in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The consensus price target fell 14% to €19.00, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns.

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. It's clear from the latest estimates that Vranken-Pommery Monopole Société Anonyme's rate of growth is expected to accelerate meaningfully, with the forecast 7.2% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 3.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.7% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Vranken-Pommery Monopole Société Anonyme is expected to grow much faster than its 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 Vranken-Pommery Monopole Société Anonyme following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Vranken-Pommery Monopole Société Anonyme. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Vranken-Pommery Monopole Société Anonyme (at least 1 which shouldn't be ignored) , and understanding these should be part of your investment process.