Vivara Participações S.A. Just Recorded A 30% EPS Beat: Here's What Analysts Are Forecasting Next

Vivara Participações S.A. (BVMF:VIVA3) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of R$665m, some 3.7% above estimates, and statutory earnings per share (EPS) coming in at R$0.75, 30% ahead of expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Taking into account the latest results, the most recent consensus for Vivara Participações from 14 analysts is for revenues of R$3.37b in 2026. If met, it would imply a solid 17% increase on its revenue over the past 12 months. Statutory per share are forecast to be R$3.15, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of R$3.36b and earnings per share (EPS) of R$3.10 in 2026. 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.

See our latest analysis for Vivara Participações

There were no changes to revenue or earnings estimates or the price target of R$34.71, suggesting that the company has met expectations in its recent result. 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 Vivara Participações, with the most bullish analyst valuing it at R$38.00 and the most bearish at R$30.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Vivara Participações is an easy business to forecast or the the analysts are all using similar assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Vivara Participações' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.4% per year. So it's pretty clear that, while Vivara Participações' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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, 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. The consensus price target held steady at R$34.71, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Vivara Participações going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Vivara Participações that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.