Enauta Participações S.A. Just Missed Earnings - But Analysts Have Updated Their Models

Shareholders might have noticed that Enauta Participações S.A. (BVMF:ENAT3) filed its quarterly result this time last week. The early response was not positive, with shares down 3.3% to R$26.40 in the past week. Statutory earnings per share of R$0.78 unfortunately missed expectations by 20%, although it was encouraging to see revenues of R$816m exceed expectations by 4.2%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Enauta Participações after the latest results.

See our latest analysis for Enauta Participações

Taking into account the latest results, the most recent consensus for Enauta Participações from five analysts is for revenues of R$3.74b in 2024. If met, it would imply a major 113% increase on its revenue over the past 12 months. In the lead-up to this report, the analysts had been modelling revenues of R$4.17b and earnings per share (EPS) of R$6.44 in 2024. Overall, while there's been a substantial drop in revenue estimates, the consensus now no longer provides an EPS estimate. This implies that after the latest results, the market believes revenue is more important.

Additionally, the consensus price target for Enauta Participações rose 12% to R$34.30, showing a clear increase in optimism from the the analysts involved. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Enauta Participações at R$41.78 per share, while the most bearish prices it at R$21.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. It's clear from the latest estimates that Enauta Participações' rate of growth is expected to accelerate meaningfully, with the forecast 174% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 16% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 0.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Enauta Participações is expected to grow much faster than its industry.

The Bottom Line

The clear low-light was that the analysts cut their forecast revenue estimates for Enauta Participações next year. They also downgraded Enauta Participações' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

At least one of Enauta Participações' five analysts has provided estimates out to 2026, which can be seen for free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Enauta Participações .

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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.