Raised Guidance: Nomad Foods Eyes Higher EPS by 2025

In a confident move, Nomad Foods revised its earnings outlook upward for the fiscal year 2025, with the stock rising on the news. The company officially raised its adjusted earnings per share (EPS) forecast from a range of €1.81-€1.85 to €1.85-€1.89, marking a projected growth of 4-6%.

This new target comes amid expectations of continued organic revenue growth between 1%-3% and an adjusted EBITDA increase of 2%-4%. Also noteworthy is the company’s plan to ramp up investments in its product lineup and brand strength once again in 2025.

The market responded positively to this financial update, with Nomad Foods' stock (NYSE: NOMD) experiencing a price uptick of approximately 3.81% in the pre-market, pushing the stock to $19.62, approaching its fifty-two-week high of $20.05.

Having gained 13.45% year-to-date leading into this morning's rise, sentiment is shifting after a more difficult 2024. Sensing the potential for continued growth, the investment community has given a strong recommendation for Nomad Foods, with analysts averaging a “strong buy” rating with a consensus target of $23.64 reflecting a healthy perceived upside from current price action, and more than 30% above the 52 week high.

Nomad Foods' strategic focus seems to be paying off as it continues to resonate well with an investment base eager for robust and sustainable financial performance. Cash flow predictions lend further credibility to this optimism, as the company expects a full-year adjusted free cash flow conversion rate of 90% or more, underlining its efficient management of capital and profitability.

The heart of Nomad Foods' operational success might lie in its vast portfolio of well-known frozen food brands such as Birds Eye, Green Cuisine, iglo, and Findus, among others. With a pledge to increase investment into these brands, the company appears poised to reinforce its market position and capture further growth within the Packaged Foods industry, which forms a critical segment of the Consumer Defensive sector.

The multinational presence of Nomad Foods, generating an annual revenue of over €3 billion with a net income to common shareholders of €200.4 million, has held a steady appeal for both insiders and institutional investors combined, holding upwards of 93% of the outstanding shares..