Revenue Beat: Três Tentos Agroindustrial S/A Exceeded Revenue Forecasts By 7.4% And Analysts Are Updating Their Estimates

It's been a good week for Três Tentos Agroindustrial S/A (BVMF:TTEN3) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.5% to R$11.34. Results overall were respectable, with statutory earnings of R$1.14 per share roughly in line with what the analysts had forecast. Revenues of R$1.8b came in 7.4% ahead of analyst predictions. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Três Tentos Agroindustrial S/A

Taking into account the latest results, the current consensus from Três Tentos Agroindustrial S/A's four analysts is for revenues of R$9.46b in 2023, which would reflect a huge 28% increase on its sales over the past 12 months. Statutory earnings per share are predicted to swell 13% to R$1.40. Yet prior to the latest earnings, the analysts had been anticipated revenues of R$10.2b and earnings per share (EPS) of R$1.55 in 2023. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the R$16.71 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Três Tentos Agroindustrial S/A at R$19.00 per share, while the most bearish prices it at R$15.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Três Tentos Agroindustrial S/A is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Três Tentos Agroindustrial S/A's past performance and to peers in the same industry. The analysts are definitely expecting Três Tentos Agroindustrial S/A's growth to accelerate, with the forecast 38% annualised growth to the end of 2023 ranking favourably alongside historical growth of 27% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Três Tentos Agroindustrial S/A to grow faster than the wider industry.

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. They also downgraded their revenue estimates, although industry data suggests that Três Tentos Agroindustrial S/A's revenues are 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Três Tentos Agroindustrial S/A going out to 2025, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Três Tentos Agroindustrial S/A .

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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.