Analyst Estimates: Here's What Brokers Think Of Cruzeiro do Sul Educacional S.A. (BVMF:CSED3) After Its Second-Quarter Report

Shareholders might have noticed that Cruzeiro do Sul Educacional S.A. (BVMF:CSED3) filed its second-quarter result this time last week. The early response was not positive, with shares down 8.3% to R$4.63 in the past week. Cruzeiro do Sul Educacional reported in line with analyst predictions, delivering revenues of R$721m and statutory earnings per share of R$0.40, suggesting the business is executing well and in line with its plan. 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.

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After the latest results, the five analysts covering Cruzeiro do Sul Educacional are now predicting revenues of R$2.80b in 2025. If met, this would reflect a reasonable 4.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 18% to R$0.65. Yet prior to the latest earnings, the analysts had been anticipated revenues of R$2.79b and earnings per share (EPS) of R$0.65 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.

View our latest analysis for Cruzeiro do Sul Educacional

It will come as no surprise then, to learn that the consensus price target is largely unchanged at R$5.36. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Cruzeiro do Sul Educacional, with the most bullish analyst valuing it at R$6.50 and the most bearish at R$3.80 per share. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Cruzeiro do Sul Educacional's past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 9.0% growth on an annualised basis. That is in line with its 10.0% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.1% per year. So although Cruzeiro do Sul Educacional is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

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. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Cruzeiro do Sul Educacional going out to 2027, and you can see them 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.