Analysts Have Made A Financial Statement On WEG S.A.'s (BVMF:WEGE3) First-Quarter Report

WEG S.A. (BVMF:WEGE3) just released its latest quarterly report and things are not looking great. WEG missed analyst forecasts, with revenues of R$10b and statutory earnings per share (EPS) of R$0.37, falling short by 2.7% and 4.2% respectively. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the twelve analysts covering WEG are now predicting revenues of R$45.4b in 2025. If met, this would reflect a meaningful 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 17% to R$1.75. Yet prior to the latest earnings, the analysts had been anticipated revenues of R$45.2b and earnings per share (EPS) of R$1.77 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for WEG

It will come as no surprise then, to learn that the consensus price target is largely unchanged at R$60.46. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values WEG at R$72.00 per share, while the most bearish prices it at R$42.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. We can infer from the latest estimates that forecasts expect a continuation of WEG'shistorical trends, as the 18% annualised revenue growth to the end of 2025 is roughly in line with the 19% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 11% per year. So although WEG is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at R$60.46, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for WEG going out to 2027, and you can see them free on our platform here..

You can also see our analysis of WEG's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.