BRF S.A. (BVMF:BRFS3) Annual Results: Here's What Analysts Are Forecasting For This Year

Investors in BRF S.A. (BVMF:BRFS3) had a good week, as its shares rose 9.2% to close at R$15.21 following the release of its full-year results. It was a respectable set of results; while revenues of R$54b were in line with analyst predictions, statutory losses were 13% smaller than expected, with BRF losing R$1.49 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on BRF after the latest results.

Check out our latest analysis for BRF

Taking into account the latest results, the consensus forecast from BRF's nine analysts is for revenues of R$55.1b in 2024. This reflects a reasonable 2.7% improvement in revenue compared to the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of R$56.3b and earnings per share (EPS) of R$0.33 in 2024. So we can see that while the consensus made a minor downgrade to revenue estimates, it no longer provides an earnings per share estimate. This suggests that the market is now more focused on revenue after the latest result.

We'd also point out that thatthe analysts have made no major changes to their price target of R$14.73. 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 BRF analyst has a price target of R$18.00 per share, while the most pessimistic values it at R$9.70. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that BRF's revenue growth is expected to slow, with the forecast 2.7% annualised growth rate until the end of 2024 being well below the historical 13% 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 4.0% 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 BRF.

The Bottom Line

The most important thing to take away is that the analysts downgraded their revenue estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse 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.

We have estimates for BRF from its nine analysts out to 2026, and you can see them free on our platform here.

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

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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.