B3 S.A. - Brasil, Bolsa, Balcão (BVMF:B3SA3) Just Released Its Annual Results And Analysts Are Updating Their Estimates

Last week, you might have seen that B3 S.A. - Brasil, Bolsa, Balcão (BVMF:B3SA3) released its annual result to the market. The early response was not positive, with shares down 3.1% to R$11.22 in the past week. Results were roughly in line with estimates, with revenues of R$9.5b and statutory earnings per share of R$0.83. 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.

View our latest analysis for B3 - Brasil Bolsa Balcão

Taking into account the latest results, the consensus forecast from B3 - Brasil Bolsa Balcão's seven analysts is for revenues of R$9.96b in 2025. This reflects a reasonable 4.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 10% to R$0.96. Before this earnings report, the analysts had been forecasting revenues of R$10.0b and earnings per share (EPS) of R$0.93 in 2025. So the consensus seems to have become somewhat more optimistic on B3 - Brasil Bolsa Balcão's earnings potential following these results.

There's been no major changes to the consensus price target of R$13.66, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. The most optimistic B3 - Brasil Bolsa Balcão analyst has a price target of R$15.00 per share, while the most pessimistic values it at R$11.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 4.7% growth on an annualised basis. That is in line with its 5.2% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.7% annually. So although B3 - Brasil Bolsa Balcão is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around B3 - Brasil Bolsa Balcão's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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. We have estimates - from multiple B3 - Brasil Bolsa Balcão analysts - going out to 2027, and you can see them free on our platform here.

You can also see whether B3 - Brasil Bolsa Balcão 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.