EZTEC Empreendimentos e Participações S.A. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

As you might know, EZTEC Empreendimentos e Participações S.A. (BVMF:EZTC3) last week released its latest annual, and things did not turn out so great for shareholders. Results look to have been somewhat negative - revenue fell 2.6% short of analyst estimates at R$1.1b, and statutory earnings of R$1.08 per share missed forecasts by 6.6%. 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. 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 EZTEC Empreendimentos e Participações

After the latest results, the nine analysts covering EZTEC Empreendimentos e Participações are now predicting revenues of R$1.40b in 2024. If met, this would reflect a substantial 29% improvement in revenue compared to the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of R$1.40b and earnings per share (EPS) of R$1.75 in 2024. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

We'd also point out that thatthe analysts have made no major changes to their price target of R$21.70. 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. There are some variant perceptions on EZTEC Empreendimentos e Participações, with the most bullish analyst valuing it at R$32.00 and the most bearish at R$14.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the EZTEC Empreendimentos e Participações' past performance and to peers in the same industry. The analysts are definitely expecting EZTEC Empreendimentos e Participações' growth to accelerate, with the forecast 29% annualised growth to the end of 2024 ranking favourably alongside historical growth of 13% 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 14% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect EZTEC Empreendimentos e Participações to grow faster than the wider 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.

At least one of EZTEC Empreendimentos e Participações' nine analysts has provided estimates out to 2025, which can be seen for free on our platform here.

You can also see whether EZTEC Empreendimentos e Participações is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.