Analyst Estimates: Here's What Brokers Think Of Atacadão S.A. (BVMF:CRFB3) After Its Third-Quarter Report

It's been a good week for Atacadão S.A. (BVMF:CRFB3) shareholders, because the company has just released its latest third-quarter results, and the shares gained 7.6% to R$7.54. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 2.6%to hit R$28b. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Atacadão

Following the latest results, Atacadão's 14 analysts are now forecasting revenues of R$122.4b in 2025. This would be a satisfactory 7.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 6,610% to R$0.80. In the lead-up to this report, the analysts had been modelling revenues of R$122.4b and earnings per share (EPS) of R$0.80 in 2025. 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$11.19. 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 Atacadão analyst has a price target of R$16.00 per share, while the most pessimistic values it at R$8.90. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Atacadão's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.9% growth on an annualised basis. This is compared to a historical growth rate of 15% 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 11% 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 Atacadão.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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. At Simply Wall St, we have a full range of analyst estimates for Atacadão going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 4 warning signs for Atacadão (1 is a bit unpleasant!) 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.