WEG S.A. (BVMF:WEGE3) Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Last week saw the newest third-quarter earnings release from WEG S.A. (BVMF:WEGE3), an important milestone in the company's journey to build a stronger business. It looks like the results were a bit of a negative overall. While revenues of R$9.9b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.6% to hit R$0.38 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for WEG

Following the latest results, WEG's twelve analysts are now forecasting revenues of R$44.0b in 2025. This would be a sizeable 23% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 18% to R$1.71. Yet prior to the latest earnings, the analysts had been anticipated revenues of R$44.1b and earnings per share (EPS) of R$1.67 in 2025. So the consensus seems to have become somewhat more optimistic on WEG's earnings potential following these results.

There's been no major changes to the consensus price target of R$56.83, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values WEG at R$72.00 per share, while the most bearish prices it at R$42.70. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. 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 20% 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 12% per year. So it's pretty clear that WEG is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around WEG's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for WEG going out to 2026, 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.