As you might know, Westrock Coffee Company (NASDAQ:WEST) last week released its latest second-quarter, and things did not turn out so great for shareholders. Revenues missed expectations somewhat, coming in at US$208m, but statutory earnings fell catastrophically short, with a loss of US$0.20 some 233% larger than what the analysts had predicted. 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. With this in mind, we’ve gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for Westrock Coffee
After the latest results, the three analysts covering Westrock Coffee are now predicting revenues of US$925.3m in 2024. If met, this would reflect a solid 11% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 48% to US$0.26. Before this latest report, the consensus had been expecting revenues of US$945.5m and US$0.14 per share in losses. While this year’s revenue estimates dropped there was also a massive increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
There was no major change to the consensus price target of US$12.67, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Westrock Coffee analyst has a price target of US$14.00 per share, while the most pessimistic values it at US$12.00. The narrow spread of estimates could suggest that the business’ future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Westrock Coffee is forecast to grow faster in the future than it has in the past, with revenues expected to display 23% annualised growth until the end of 2024. If achieved, this would be a much better result than the 5.9% annual decline over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 3.1% per year. So it looks like Westrock Coffee is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at US$12.67, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates – from multiple Westrock Coffee analysts – going out to 2025, and you can see them free on our platform here.
It is also worth noting that we have found 2 warning signs for Westrock Coffee 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.