Ambev S.A. (BVMF:ABEV3) Just Released Its Yearly Results And Analysts Are Updating Their Estimates

It's been a good week for Ambev S.A. (BVMF:ABEV3) shareholders, because the company has just released its latest full-year results, and the shares gained 9.9% to R$12.22. It was a workmanlike result, with revenues of R$89b coming in 2.3% ahead of expectations, and statutory earnings per share of R$0.91, in line with analyst appraisals. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Ambev

Taking into account the latest results, the consensus forecast from Ambev's 14 analysts is for revenues of R$93.6b in 2025. This reflects a reasonable 4.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 8.0% to R$0.99. Before this earnings report, the analysts had been forecasting revenues of R$93.2b and earnings per share (EPS) of R$0.98 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.

The analysts reconfirmed their price target of R$14.29, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Ambev analyst has a price target of R$18.09 per share, while the most pessimistic values it at R$11.05. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Ambev shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Ambev's revenue growth is expected to slow, with the forecast 4.6% annualised growth rate until the end of 2025 being well below the historical 10% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.0% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Ambev.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at R$14.29, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Ambev going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Ambev that you should be aware of.

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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.