Analysts Are Updating Their Kerry Group plc (ISE:KRZ) Estimates After Its Half-Yearly Results

Last week saw the newest half-year earnings release from Kerry Group plc (ISE:KRZ), an important milestone in the company's journey to build a stronger business. Kerry Group reported in line with analyst predictions, delivering revenues of €3.3b and statutory earnings per share of €3.99, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the consensus forecast from Kerry Group's 15 analysts is for revenues of €6.82b in 2026. This reflects an okay 2.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 11% to €4.47. Yet prior to the latest earnings, the analysts had been anticipated revenues of €6.80b and earnings per share (EPS) of €4.60 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

See our latest analysis for Kerry Group

It might be a surprise to learn that the consensus price target was broadly unchanged at €96.83, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Kerry Group at €111 per share, while the most bearish prices it at €81.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Kerry Group shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Kerry Group's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 5.9% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 3.5% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 3.8% per year. Not only are Kerry Group's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Kerry Group. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at €96.83, 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 forecasts for Kerry Group going out to 2028, and you can see them free on our platform here.

You can also see whether Kerry Group is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.