Results: BB Seguridade Participações S.A. Exceeded Expectations And The Consensus Has Updated Its Estimates

As you might know, BB Seguridade Participações S.A. (BVMF:BBSE3) recently reported its quarterly numbers. Results look mixed - while revenue fell marginally short of analyst estimates at R$2.4b, statutory earnings beat expectations 5.7%, with BB Seguridade Participações reporting profits of R$1.02 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 BB Seguridade Participações

Taking into account the latest results, the most recent consensus for BB Seguridade Participações from eight analysts is for revenues of R$10.2b in 2024. If met, it would imply a reasonable 7.3% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to shrink 2.8% to R$4.02 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of R$10.2b and earnings per share (EPS) of R$4.04 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of R$37.46, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on BB Seguridade Participações, with the most bullish analyst valuing it at R$41.51 and the most bearish at R$30.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that BB Seguridade Participações' revenue growth is expected to slow, with the forecast 9.8% annualised growth rate until the end of 2024 being well below the historical 15% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.9% annually. Factoring in the forecast slowdown in growth, it looks like BB Seguridade Participações is forecast to grow at about the same rate as 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at R$37.46, with the latest estimates not enough to have an impact on their price targets.

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

And what about risks? Every company has them, and we've spotted 2 warning signs for BB Seguridade Participações (of which 1 is a bit concerning!) you should know about.

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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.