Cury Construtora e Incorporadora S.A. (BVMF:CURY3) Just Beat EPS By 9.6%: Here's What Analysts Are Forecasting For This Year

Cury Construtora e Incorporadora S.A. (BVMF:CURY3) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of R$603m arriving 8.4% ahead of forecasts. Statutory earnings per share (EPS) were R$0.30, 9.6% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Cury Construtora e Incorporadora

After the latest results, the five analysts covering Cury Construtora e Incorporadora are now predicting revenues of R$2.35b in 2022. If met, this would reflect a meaningful 8.4% improvement in sales compared to the last 12 months. Per-share earnings are expected to increase 4.6% to R$1.23. In the lead-up to this report, the analysts had been modelling revenues of R$2.35b and earnings per share (EPS) of R$1.23 in 2022. 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 consensus price target rose 8.0% to R$15.78despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Cury Construtora e Incorporadora's earnings by assigning a price premium. 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. There are some variant perceptions on Cury Construtora e Incorporadora, with the most bullish analyst valuing it at R$17.00 and the most bearish at R$13.70 per share. This is a very narrow spread of estimates, implying either that Cury Construtora e Incorporadora is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Cury Construtora e Incorporadora's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Cury Construtora e Incorporadora'shistorical trends, as the 17% annualised revenue growth to the end of 2022 is roughly in line with the 21% annual revenue growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% annually. So it's pretty clear that Cury Construtora e Incorporadora is forecast to grow substantially 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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Cury Construtora e Incorporadora going out to 2024, and you can see them free on our platform here.

Even so, be aware that Cury Construtora e Incorporadora 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.