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As you might know, Reckitt Benckiser Group plc (LON:RKT) recently reported its yearly numbers. Revenues of UK£14b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at UK£3.25, missing estimates by 6.3%. 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.
View our latest analysis for Reckitt Benckiser Group
Taking into account the latest results, the consensus forecast from Reckitt Benckiser Group's 16 analysts is for revenues of UK£14.9b in 2023, which would reflect a reasonable 3.3% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to accumulate 3.1% to UK£3.36. Yet prior to the latest earnings, the analysts had been anticipated revenues of UK£14.8b and earnings per share (EPS) of UK£3.41 in 2023. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at UK£68.11. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Reckitt Benckiser Group, with the most bullish analyst valuing it at UK£80.00 and the most bearish at UK£49.75 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Reckitt Benckiser Group's past performance and to peers in the same industry. The period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 3.3% growth on an annualised basis. That is in line with its 3.2% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 3.3% per year. It's clear that while Reckitt Benckiser Group's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.