Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Just Eat profits to beat guidance in 2024, says analysts

Published 04/03/2024, 11:47
Updated 04/03/2024, 12:11
©  Reuters Just Eat profits to beat guidance in 2024, says analysts

Proactive Investors - Just Eat Takeaway (LON:JETJ) is expected to produce greater profits in 2024 than originally forecast by analysts after the takeaway company pointed to several tailwinds in its full-year results.

Shore Capital raised its 2024 underlying earnings guidance to €460 million, €10 million ahead of company guidance and 44% higher than its 2023 profits.

The lift has been driven by North American margins finishing 2023 in a stronger position, cost pressures in the UK and Ireland reducing and gross transaction volume growth, excluding the US, already being ahead of guidance of 7%.

“We believe positive order growth in northern Europe and UK&I will outweigh a weak southern Europe and New Zealand, driven by strong UK&I price reinvestment, logistics coverage expansion in N.E. and the introduction of a N.E. subscription service,” Shore Capital said.

Profits are expected to be impacted in the first six months of 2024 in North America due to the cost of rolling out logistics, however, the UK broker doesn’t believe these levels will reflect the “new normal”.

Therefore, Shore Capital retains its ‘buy’ rating for Just Eat, targeting a 2,100p share price, almost a 73% premium to the company’s current value.

Last week, Just Eat shares tumbled after investors were discouraged by the lack of shareholder buyback announcements, taking focus away from the fact both earnings and guidance beat expectations.

Read more on Proactive Investors UK

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.