Boa Vista Serviços S.A. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Shareholders of Boa Vista Serviços S.A. (BVMF:BOAS3) will be pleased this week, given that the stock price is up 18% to R$12.44 following its latest annual results. Revenues were R$630m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at R$0.088, an impressive 164% ahead of estimates. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Boa Vista Serviços

Taking into account the latest results, the current consensus from Boa Vista Serviços' three analysts is for revenues of R$865.8m in 2021, which would reflect a sizeable 37% increase on its sales over the past 12 months. Per-share earnings are expected to soar 354% to R$0.41. Before this earnings report, the analysts had been forecasting revenues of R$865.8m and earnings per share (EPS) of R$0.41 in 2021. 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.

There were no changes to revenue or earnings estimates or the price target of R$17.00, suggesting that the company has met expectations in its recent result. 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. There are some variant perceptions on Boa Vista Serviços, with the most bullish analyst valuing it at R$19.00 and the most bearish at R$15.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Boa Vista Serviços' growth to accelerate, with the forecast 37% annualised growth to the end of 2021 ranking favourably alongside historical growth of 4.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Boa Vista Serviços is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Boa Vista Serviços going out to 2022, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 3 warning signs for Boa Vista Serviços you should know about.

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This article by Simply Wall St is general in nature. 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.
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