- Consumer Durables
Cyrela Brazil Realty S.A. Empreendimentos e Participações Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
Cyrela Brazil Realty S.A. Empreendimentos e Participações (BVMF:CYRE3) shareholders are probably feeling a little disappointed, since its shares fell 7.4% to R$14.74 in the week after its latest annual results. The result was positive overall - although revenues of R$5.4b were in line with what the analysts predicted, Cyrela Brazil Realty Empreendimentos e Participações surprised by delivering a statutory profit of R$2.13 per share, modestly greater than expected. 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.
Check out our latest analysis for Cyrela Brazil Realty Empreendimentos e Participações
Taking into account the latest results, the current consensus from Cyrela Brazil Realty Empreendimentos e Participações' nine analysts is for revenues of R$5.76b in 2023, which would reflect a credible 6.5% increase on its sales over the past 12 months. Per-share earnings are expected to accumulate 7.1% to R$2.29. In the lead-up to this report, the analysts had been modelling revenues of R$5.63b and earnings per share (EPS) of R$2.35 in 2023. So it's pretty clear consensus is mixed on Cyrela Brazil Realty Empreendimentos e Participações after the latest results; whilethe analysts lifted revenue numbers, they also administered a minor downgrade to per-share earnings expectations.
The consensus price target was unchanged at R$21.50, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Cyrela Brazil Realty Empreendimentos e Participações at R$29.00 per share, while the most bearish prices it at R$15.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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. It's pretty clear that there is an expectation that Cyrela Brazil Realty Empreendimentos e Participações' revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 6.5% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. Factoring in the forecast slowdown in growth, it seems obvious that Cyrela Brazil Realty Empreendimentos e Participações is also expected to grow slower than other industry participants.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Cyrela Brazil Realty Empreendimentos e Participações. Fortunately, they also upgraded their revenue estimates, although our data indicates sales are expected to perform worse 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 in mind, we wouldn't be too quick to come to a conclusion on Cyrela Brazil Realty Empreendimentos e Participações. Long-term earnings power is much more important than next year's profits. We have forecasts for Cyrela Brazil Realty Empreendimentos e Participações going out to 2025, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for Cyrela Brazil Realty Empreendimentos e Participações you should know about.
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Find out whether Cyrela Brazil Realty Empreendimentos e Participações is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free Analysis
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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.
Cyrela Brazil Realty Empreendimentos e Participações
Cyrela Brazil Realty S.A. Empreendimentos e Participações develops, constructs, and sells residential properties in Brazil.
Undervalued average dividend payer.