Orizon Valorização de Resíduos S.A. Just Missed EPS By 25%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that Orizon Valorização de Resíduos S.A. (BVMF:ORVR3) released its quarterly result to the market. The early response was not positive, with shares down 2.5% to R$45.35 in the past week. It looks like a pretty bad result, all things considered. Although revenues of R$249m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 25% to hit R$0.50 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Orizon Valorização de Resíduos

Taking into account the latest results, the consensus forecast from Orizon Valorização de Resíduos' five analysts is for revenues of R$1.33b in 2025. This reflects a sizeable 53% improvement in revenue compared to the last 12 months. Before this earnings report, the analysts had been forecasting revenues of R$1.34b and earnings per share (EPS) of R$3.13 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.

We'd also point out that thatthe analysts have made no major changes to their price target of R$57.47. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Orizon Valorização de Resíduos at R$62.00 per share, while the most bearish prices it at R$51.70. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Orizon Valorização de Resíduos' growth to accelerate, with the forecast 40% annualised growth to the end of 2025 ranking favourably alongside historical growth of 23% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Orizon Valorização de Resíduos is expected to grow much faster than its 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. 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$57.47, with the latest estimates not enough to have an impact on their price targets.

At least one of Orizon Valorização de Resíduos' five analysts has provided estimates out to 2026, which can be seen for free on our platform here.

It is also worth noting that we have found 2 warning signs for Orizon Valorização de Resíduos that you need to take into consideration.

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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.