Just Eat Takeaway.com share price and full-year earnings results preview

When are Just Eat Takeaway.com’s results expected?

Just Eat Takeaway.com, the Dutch multinational online food ordering and delivery company, formed from the merger of London-based Just Eat and Amsterdam-based Takeaway.com in 2020, is set to release its full-year (FY) 2022 results on 1 March 2023. The results are for the full-year ending December 2022.

What is ‘The Street’s’ expectation for the FY results?

‘The Street’ expectations for the upcoming results are as follows:

Revenue of €5.594 billion : +24.44% year-on-year (YoY)
Earnings per share (EPS) : -7.66 cents : -58.92% (YoY)

After experiencing record demand during the Covid-19 pandemic and lockdowns, food delivery companies such as Just Eat Takeaway.com are here to stay as customers have gotten used to being delivered their food in a contactless manner, both at home and in the office.

According to Grand View Research, the global online food delivery service market is projected to grow at a compound annual growth rate of close to 19% over the next ten years.

As the industry grows, competition is likely to grow as well with more mergers, such as the one between the UK’s Just Eat and the Netherland’s Takeaway.com a few years ago, likely to be seen.

With Just Eat Takeaway.com expanding into the grocery delivery market and signing several partnerships in the past year, with the likes of Getir in continental Europe and Sainsbury’s in the UK, for example, further are likely to be seen this year as well.

The delivery company’s full-year results and forward guidance will show whether it remains on track with regards to its rapid grocery growth strategy, can control its growth-incurred costs and is able to report better margins.

How to trade JUST EAT into the results

Refinitiv data shows a consensus analyst rating of between ‘buy’ and ‘hold’ for Just Eat – 2 strong buy, 7 buy, 7 hold and 1 strong sell - with the median of estimates suggesting a long-term price target of €30.00 for the share, roughly 47% higher than the current price (as of 28 February 2023).

IG sentiment data shows that 90% of clients with open positions on the share (as of 28 February 2023) expect the price to rise over the near term, while 10% of clients expect the price to fall.

Just Eat Takaway.com – technical view

Just Eat Takeaway.com’s share price, which at the beginning of the year hit the €25 mark, has given back most of this year’s gains and is only trading up around 2% year-to-date whilst slipping towards the 200-day simple moving average (SMA) and December low at €18.965-to-€18.930 which is key for the ensuing trend.

Just Eat Takeaway.com Daily Chart

The fact that the share has slipped through its October-to-February uptrend line in early February and fell through its €21.940 late January low pointed to a medium-term bearish reversal taking shape.

A weekly chart close below the 200-day simple moving average (SMA) and December low at €18.965-to-€18.930 would open the way for the May 2022 low at €16.470 to be back in the picture, below which the July and October 2022 lows can be found at €13.100 and €12.180.

Just Eat Takeaway.com Weekly Chart

Only a currently unexpected bullish reversal and break through the September 2021-to-February 2023 downtrend line at €23.310 and a subsequent advance to above the €24.69 early February high would make us question the currently negative technical outlook.

Summary

Just Eat is set to release its full-year 2022 results on 1 March 2023.

Revenue is estimated to come in at €5.594 billion (+24.44% YoY) while another year of negative EPS could take it to -7.66 cents (-58.92% YoY).

Revenue is expected to grow on the back of further partnership deals with grocery and delivery companies such as Europe’s Getir and in the UK Sainsbury’s being signed while the company tries to control its growth-incurred costs and increase its margins.

Long-term broker consensus suggests the share to currently sit between a ‘buy’ and ‘hold’, with a median price target of €30.00 for the share, roughly 47% higher than the current price.

90% of IG’s clients with open positions are long the share and 10% short.

The Just Eat Takeaway.com share price’s slide through its October-to-February uptrend line in early February and fall through its €21.940 late January low pointed to a medium-term bearish reversal taking shape with the 200-day simple moving average (SMA) and December low at €18.965-to-€18.930 representing the next downside target zone.

If slipped through, the May 2022 low at €16.470 would be in focus as well.

Only a bullish reversal and rise above the €24.69 early February high would invalidate the negative technical outlook.