Jerónimo Martins, SGPS, S.A. (ELI:JMT) Just Released Its Half-Year Results And Analysts Are Updating Their Estimates

Investors in Jerónimo Martins, SGPS, S.A. (ELI:JMT) had a good week, as its shares rose 3.3% to close at €17.36 following the release of its interim results. Jerónimo Martins SGPS reported in line with analyst predictions, delivering revenues of €18b and statutory earnings per share of €0.41, suggesting the business is executing well and in line with its plan. 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.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Taking into account the latest results, the current consensus from Jerónimo Martins SGPS' 18 analysts is for revenues of €38.1b in 2026. This would reflect a reasonable 3.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 5.9% to €1.07. Yet prior to the latest earnings, the analysts had been anticipated revenues of €38.1b and earnings per share (EPS) of €1.08 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Jerónimo Martins SGPS

There were no changes to revenue or earnings estimates or the price target of €23.06, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Jerónimo Martins SGPS at €29.00 per share, while the most bearish prices it at €15.10. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Jerónimo Martins SGPS' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 6.7% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.9% per year. So it's pretty clear that, while Jerónimo Martins SGPS' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than 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 Jerónimo Martins SGPS. Long-term earnings power is much more important than next year's profits. We have forecasts for Jerónimo Martins SGPS going out to 2028, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Jerónimo Martins SGPS that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.