Results: C&C Group plc Exceeded Expectations And The Consensus Has Updated Its Estimates
C&C Group plc (LON:CCR) just released its full-year report and things are looking bullish. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 11% higher than the analysts had forecast, at €1.4b, while EPS were €0.099 beating analyst models by 46%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for C&C Group
Taking into account the latest results, the current consensus from C&C Group's six analysts is for revenues of €1.64b in 2023, which would reflect a notable 14% increase on its sales over the past 12 months. Per-share earnings are expected to surge 115% to €0.20. Before this earnings report, the analysts had been forecasting revenues of €1.64b and earnings per share (EPS) of €0.20 in 2023. So the consensus seems to have become somewhat more optimistic on C&C Group's earnings potential following these results.
The consensus price target was unchanged at UK£2.79, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 C&C Group at UK£3.02 per share, while the most bearish prices it at UK£2.24. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting C&C Group is an easy business to forecast or the the analysts are all using similar assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the C&C Group's past performance and to peers in the same industry. It's clear from the latest estimates that C&C Group's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 11% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.8% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect C&C Group to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around C&C Group's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target held steady at UK£2.79, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for C&C Group going out to 2024, and you can see them free on our platform here..
You still need to take note of risks, for example - C&C Group has 2 warning signs we think you should be aware of.
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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.
