CAVA Group, Inc. (NYSE:CAVA) just released its latest second-quarter results and things are looking bullish. The company beat forecasts, with revenue of US$233m, some 6.4% above estimates, and statutory earnings per share (EPS) coming in at US$0.17, 36% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

After the latest results, the twelve analysts covering CAVA Group are now predicting revenues of US$933.2m in 2024. If met, this would reflect a notable 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 15% to US$0.43. Before this earnings report, the analysts had been forecasting revenues of US$902.1m and earnings per share (EPS) of US$0.35 in 2024. So it seems there's been a definite increase in optimism about CAVA Group's future following the latest results, with a considerable lift to the earnings per share forecasts in particular.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 16% to US$104per share. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values CAVA Group at US$125 per share, while the most bearish prices it at US$77.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of CAVA Group'shistorical trends, as the 22% annualised revenue growth to the end of 2024 is roughly in line with the 21% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 9.7% annually. So although CAVA Group is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around CAVA Group's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for CAVA Group going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with CAVA Group .

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