Results: EZTEC Empreendimentos e Participações S.A. Exceeded Expectations And The Consensus Has Updated Its Estimates

A week ago, EZTEC Empreendimentos e Participações S.A. (BVMF:EZTC3) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. EZTEC Empreendimentos e Participações delivered a significant beat with revenue hitting R$416m and statutory EPS reaching R$0.41, both beating estimates by more than 10%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 EZTEC Empreendimentos e Participações

Taking into account the latest results, the consensus forecast from EZTEC Empreendimentos e Participações' nine analysts is for revenues of R$1.28b in 2024. This reflects a credible 2.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 7.1% to R$1.31. Before this earnings report, the analysts had been forecasting revenues of R$1.28b and earnings per share (EPS) of R$1.33 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at R$19.82. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic EZTEC Empreendimentos e Participações analyst has a price target of R$32.00 per share, while the most pessimistic values it at R$14.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that EZTEC Empreendimentos e Participações' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 5.3% growth on an annualised basis. This is compared to a historical growth rate of 9.2% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 13% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than EZTEC Empreendimentos e Participações.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that EZTEC Empreendimentos e Participações' revenue is 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for EZTEC Empreendimentos e Participações going out to 2026, and you can see them 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.

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