BB Seguridade Participações S.A. (BVMF:BBSE3) Annual Results Just Came Out: Here's What Analysts Are Forecasting For This Year

As you might know, BB Seguridade Participações S.A. (BVMF:BBSE3) recently reported its full-year numbers. BB Seguridade Participações reported R$9.3b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of R$3.99 beat expectations, being 4.5% higher than what the analysts expected. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for BB Seguridade Participações

Taking into account the latest results, the current consensus from BB Seguridade Participações' eight analysts is for revenues of R$9.82b in 2024. This would reflect a credible 5.4% increase on its revenue over the past 12 months. Statutory per share are forecast to be R$4.05, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of R$10.2b and earnings per share (EPS) of R$4.01 in 2024. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

The consensus has reconfirmed its price target of R$37.36, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on BB Seguridade Participações' market value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic BB Seguridade Participações analyst has a price target of R$41.00 per share, while the most pessimistic values it at R$30.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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 BB Seguridade Participações' revenue growth is expected to slow, with the forecast 5.4% annualised growth rate until the end of 2024 being well below the historical 14% 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 7.9% annually. Factoring in the forecast slowdown in growth, it seems obvious that BB Seguridade Participações is also expected to grow slower than other industry participants.

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 negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Even so, long term profitability is more important for the value creation process. 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.

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 BB Seguridade Participações going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for BB Seguridade Participações (1 doesn't sit too well with us!) 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.