Here's What Analysts Are Forecasting For Cielo S.A. (BVMF:CIEL3) After Its Full-Year Results

Investors in Cielo S.A. (BVMF:CIEL3) had a good week, as its shares rose 3.8% to close at R$5.15 following the release of its yearly results. Cielo reported R$11b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of R$0.77 beat expectations, being 2.2% higher than what the analysts expected. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Cielo

Taking into account the latest results, the most recent consensus for Cielo from seven analysts is for revenues of R$11.0b in 2024. If met, it would imply a satisfactory 3.7% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to decrease 6.4% to R$0.72 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of R$11.1b and earnings per share (EPS) of R$0.72 in 2024. 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.

The analysts reconfirmed their price target of R$5.34, showing that the business is executing well and in line with expectations. 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 Cielo analyst has a price target of R$6.00 per share, while the most pessimistic values it at R$3.90. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Cielo's past performance and to peers in the same industry. For example, we noticed that Cielo's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 3.7% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 1.6% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 2.6% per year. Not only are Cielo's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous 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$5.34, 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. At Simply Wall St, we have a full range of analyst estimates for Cielo going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Cielo has 3 warning signs (and 2 which make us uncomfortable) we think you should know about.

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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.