Earnings Beat: LVMH Moët Hennessy - Louis Vuitton, Société Européenne Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
The interim results for LVMH Moët Hennessy - Louis Vuitton, Société Européenne (EPA:MC) were released last week, making it a good time to revisit its performance. The result was positive overall - although revenues of €39b were in line with what the analysts predicted, LVMH Moët Hennessy - Louis Vuitton Société Européenne surprised by delivering a statutory profit of €11.51 per share, modestly greater than expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, LVMH Moët Hennessy - Louis Vuitton Société Européenne's 22 analysts currently expect revenues in 2026 to be €81.0b, approximately in line with the last 12 months. Statutory per share are forecast to be €22.47, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €80.8b and earnings per share (EPS) of €21.95 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
See our latest analysis for LVMH Moët Hennessy - Louis Vuitton Société Européenne
The consensus price target was unchanged at €570, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 €660 and the most bearish at €420 per share. 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 LVMH Moët Hennessy - Louis Vuitton Société Européenne shareholders.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that LVMH Moët Hennessy - Louis Vuitton Société Européenne's revenue growth is expected to slow, with the forecast 3.4% annualised growth rate until the end of 2026 being well below the historical 5.3% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.6% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than LVMH Moët Hennessy - Louis Vuitton Société Européenne.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards LVMH Moët Hennessy - Louis Vuitton Société Européenne following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that LVMH Moët Hennessy - Louis Vuitton Société Européenne's revenue is expected to perform worse 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple LVMH Moët Hennessy - Louis Vuitton Société Européenne analysts - going out to 2028, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for LVMH Moët Hennessy - Louis Vuitton Société Européenne that you need to take into consideration.
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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.