Village Farms International, Inc. (NASDAQ:VFF) investors will be delighted, with the company turning in some strong numbers with its latest results. Revenues and losses per share were both better than expected, with revenues of US$83m leading estimates by 3.5%. Statutory losses were smaller than the analystsexpected, coming in at US$0.01 per share. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the current consensus from Village Farms International's five analysts is for revenues of US$346.1m in 2025. This would reflect a reasonable 5.6% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 95% to US$0.022. Before this latest report, the consensus had been expecting revenues of US$347.7m and US$0.02 per share in losses. So it's pretty clear the analysts have mixed opinions on Village Farms International even after this update; although they reconfirmed their revenue numbers, it came at the cost of a noticeable increase in per-share losses.
The consensus price target held steady at US$2.20, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Village Farms International at US$3.00 per share, while the most bearish prices it at US$1.50. 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.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Village Farms International's revenue growth is expected to slow, with the forecast 4.4% annualised growth rate until the end of 2025 being well below the historical 16% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.8% annually. Even after the forecast slowdown in growth, it seems obvious that Village Farms International is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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 Village Farms International. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Village Farms International going out to 2026, and you can see them free on our platform here..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Village Farms International , and understanding them should be part of your investment process.
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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.
