WEG S.A. (BVMF:WEGE3) Just Recorded An Earnings Miss And Analysts Are Updating Their Numbers

WEG S.A. (BVMF:WEGE3) just released its latest quarterly report and things are not looking great. Results look to have been somewhat negative - revenue fell 7.5% short of analyst estimates at R$10b, and statutory earnings of R$0.38 per share missed forecasts by 6.4%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on WEG after the latest results.

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Taking into account the latest results, the current consensus from WEG's twelve analysts is for revenues of R$43.2b in 2025. This would reflect a reasonable 5.5% increase on its revenue over the past 12 months. In the lead-up to this report, the analysts had been modelling revenues of R$43.8b and earnings per share (EPS) of R$1.69 in 2025. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.

See our latest analysis for WEG

We'd also point out that thatthe analysts have made no major changes to their price target of R$53.95. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values WEG at R$64.00 per share, while the most bearish prices it at R$42.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 would highlight that WEG's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2025 being well below the historical 18% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 11% annually. So it's pretty clear that, while WEG's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

We have estimates for WEG from its twelve analysts out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.