Yahoo Finance LVMH Moët Hennessy - Louis Vuitton, Société Européenne Just Released Its Full-Year Earnings: Here's What Analysts Think
LVMH Moët Hennessy - Louis Vuitton, Société Européenne (EPA:MC) shares fell 3.2% to €399 in the week since its latest annual results. It was a credible result overall, with revenues of €54b and statutory earnings per share of €14.23 both in line with analyst estimates, showing that LVMH Moët Hennessy - Louis Vuitton Société Européenne is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether analysts have changed their mind on LVMH Moët Hennessy - Louis Vuitton Société Européenne after the latest results.
View our latest analysis for LVMH Moët Hennessy - Louis Vuitton Société Européenne
Following the latest results, LVMH Moët Hennessy - Louis Vuitton Société Européenne's 19 analysts are now forecasting revenues of €58.2b in 2020. This would be a notable 8.5% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to ascend 15% to €16.42. Before this earnings report, analysts had been forecasting revenues of €57.5b and earnings per share (EPS) of €15.95 in 2020. Analysts seem to have become more bullish on the business, judging by their new earnings per share estimates.
There's been no major changes to the consensus price target of €440, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's 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. There are some variant perceptions on LVMH Moët Hennessy - Louis Vuitton Société Européenne, with the most bullish analyst valuing it at €550 and the most bearish at €278 per share. 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.
Another way to assess these estimates is by comparing them to past performance, and seeing whether analysts are more or less bullish relative to other companies in the market. We can infer from the latest estimates that analysts are expecting a continuation of LVMH Moët Hennessy - Louis Vuitton Société Européenne's historical trends, as next year's forecast 8.5% revenue growth is roughly in line with 10% annual revenue growth over the past five years. Compare this with the wider market, which analyst estimates (in aggregate) suggest will see revenues grow 6.9% next year. It's clear that while LVMH Moët Hennessy - Louis Vuitton Société Européenne's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the market itself.
The Bottom Line
The biggest takeaway for us from these new estimates is that the consensus upgraded its earnings per share estimates, showing a clear improvement in sentiment around LVMH Moët Hennessy - Louis Vuitton Société Européenne's earnings potential next year. Happily, there were no real changes to sales forecasts, with the business still expected to grow in line with the overall market. The consensus price target held steady at €440, with the latest estimates not enough to have an impact on analysts' estimated valuations.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for LVMH Moët Hennessy - Louis Vuitton Société Européenne going out to 2024, and you can see them free on our platform here.
You can also see whether LVMH Moët Hennessy - Louis Vuitton Société Européenne is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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