Ânima Holding S.A. (BVMF:ANIM3) Just Released Its Yearly Earnings: Here's What Analysts Think

The annual results for Ânima Holding S.A. (BVMF:ANIM3) were released last week, making it a good time to revisit its performance. Revenues were in line with expectations, at R$3.7b, while statutory losses ballooned to R$0.87 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Ânima Holding

Taking into account the latest results, the consensus forecast from Ânima Holding's seven analysts is for revenues of R$3.90b in 2024. This reflects a reasonable 4.4% improvement in revenue compared to the last 12 months. Statutory losses are forecast to balloon 89% to R$0.10 per share. In the lead-up to this report, the analysts had been modelling revenues of R$3.90b and earnings per share (EPS) of R$0.11 in 2024. So despite reconfirming their revenue estimates, the analysts are now forecasting a loss instead of a profit, which looks like a definite drop in sentiment following the latest results.

The consensus price target held steady at R$7.09, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. 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. Currently, the most bullish analyst values Ânima Holding at R$8.50 per share, while the most bearish prices it at R$6.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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 Ânima Holding's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 4.4% growth on an annualised basis. This is compared to a historical growth rate of 30% 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 7.9% annually. Factoring in the forecast slowdown in growth, it seems obvious that Ânima Holding is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts are expecting Ânima Holding to become unprofitable next year. 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. We have estimates - from multiple Ânima Holding analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Ânima Holding .

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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.