Camil Alimentos S.A. (BVMF:CAML3) Released Earnings Last Week And Analysts Lifted Their Price Target To R$11.45

It's been a good week for Camil Alimentos S.A. (BVMF:CAML3) shareholders, because the company has just released its latest quarterly results, and the shares gained 8.3% to R$9.24. Results look mixed - while revenue fell marginally short of analyst estimates at R$2.9b, statutory earnings were in line with expectations, at R$1.02 per share. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Camil Alimentos

After the latest results, the six analysts covering Camil Alimentos are now predicting revenues of R$12.1b in 2025. If met, this would reflect a credible 5.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to drop 17% to R$0.91 in the same period. Before this earnings report, the analysts had been forecasting revenues of R$12.1b and earnings per share (EPS) of R$1.03 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 5.0% to R$11.45, suggesting the revised estimates are not indicative of a weaker long-term future for the business. 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. There are some variant perceptions on Camil Alimentos, with the most bullish analyst valuing it at R$12.00 and the most bearish at R$10.00 per share. 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. We would highlight that Camil Alimentos' revenue growth is expected to slow, with the forecast 7.1% annualised growth rate until the end of 2025 being well below the historical 17% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.4% annually. So it's pretty clear that, while Camil Alimentos' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Camil Alimentos going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Camil Alimentos (1 shouldn't be ignored!) 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.

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