Shareholders will be ecstatic, with their stake up 26% over the past week following Farmer Bros. Co.'s (NASDAQ:FARM) latest quarterly results. Although revenues of US$90m were in line with analyst expectations, Farmer Bros surprised on the earnings front, with an unexpected (statutory) profit of US$0.01 per share a nice improvement on the losses that the analystsforecast. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Farmer Bros after the latest results.

See our latest analysis for Farmer Bros

Taking into account the latest results, Farmer Bros' dual analysts currently expect revenues in 2025 to be US$349.9m, approximately in line with the last 12 months. Losses are expected to increase substantially, hitting US$0.52 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$352.7m and losses of US$0.64 per share in 2025. Although the revenue estimates have not really changed Farmer Bros'future looks a little different to the past, with a cut to the loss per share forecasts in particular.

Even with the lower forecast losses, the analysts lowered their valuations, with the average price target falling 13% to US$5.25. It looks likethe analysts have become less optimistic about the overall business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that Farmer Bros' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 2.9% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 11% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 2.4% annually. So it looks like Farmer Bros is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Farmer Bros' future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Farmer Bros going out as far as 2026, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for Farmer Bros (1 is a bit concerning!) 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.