SLC Agrícola S.A. (BVMF:SLCE3) Just Released Its First-Quarter Results And Analysts Are Updating Their Estimates

SLC Agrícola S.A. (BVMF:SLCE3) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. The result was fairly weak overall, with revenues of R$2.0b being 5.4% less than what the analysts had been modelling. 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 SLC Agrícola

Taking into account the latest results, the consensus forecast from SLC Agrícola's five analysts is for revenues of R$7.67b in 2024. This reflects a notable 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 31% to R$1.72. In the lead-up to this report, the analysts had been modelling revenues of R$7.51b and earnings per share (EPS) of R$1.70 in 2024. There doesn't appear to have been a major change in sentiment following the results, other than the small lift in revenue estimates.

Even though revenue forecasts increased, there was no change to the consensus price target of R$23.95, suggesting the analysts are focused on earnings as the driver of value creation. 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 SLC Agrícola analyst has a price target of R$29.00 per share, while the most pessimistic values it at R$21.50. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SLC Agrícola's past performance and to peers in the same industry. We would highlight that SLC Agrícola's revenue growth is expected to slow, with the forecast 14% annualised growth rate until the end of 2024 being well below the historical 27% 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 5.0% annually. Even after the forecast slowdown in growth, it seems obvious that SLC Agrícola is also expected to grow faster than the wider industry.

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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for SLC Agrícola going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for SLC Agrícola 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.