Analysts Are Updating Their Orizon Valorização de Resíduos S.A. (BVMF:ORVR3) Estimates After Its Yearly Results

Orizon Valorização de Resíduos S.A. (BVMF:ORVR3) missed earnings with its latest annual results, disappointing overly-optimistic forecasters. Revenues missed expectations somewhat, coming in at R$626m, but statutory earnings fell catastrophically short, with a loss of R$1.69 some 789% larger than what the analysts had predicted. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Orizon Valorização de Resíduos

Taking into account the latest results, the consensus forecast from Orizon Valorização de Resíduos' three analysts is for revenues of R$1.07b in 2023, which would reflect a sizeable 71% improvement in sales compared to the last 12 months. Orizon Valorização de Resíduos is also expected to turn profitable, with statutory earnings of R$1.98 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of R$1.07b and earnings per share (EPS) of R$1.97 in 2023. 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.

The analysts reconfirmed their price target of R$47.07, showing that the business is executing well and in line with expectations. 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 Orizon Valorização de Resíduos, with the most bullish analyst valuing it at R$51.82 and the most bearish at R$42.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Orizon Valorização de Resíduos is an easy business to forecast or the the analysts are all using similar assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Orizon Valorização de Resíduos' rate of growth is expected to accelerate meaningfully, with the forecast 71% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 16% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 21% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Orizon Valorização de Resíduos to grow faster than the wider 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. The consensus price target held steady at R$47.07, 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. We have estimates - from multiple Orizon Valorização de Resíduos analysts - going out to 2024, and you can see them free on our platform here.

Even so, be aware that Orizon Valorização de Resíduos is showing 1 warning sign in our investment analysis , you should know about...

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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.