Caixa Seguridade Participações S.A. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Caixa Seguridade Participações S.A. (BVMF:CXSE3) just released its latest third-quarter results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 2.8% to hit R$1.3b. Caixa Seguridade Participações reported statutory earnings per share (EPS) R$0.36, which was a notable 13% above what the analysts had forecast. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Caixa Seguridade Participações

After the latest results, the eleven analysts covering Caixa Seguridade Participações are now predicting revenues of R$5.69b in 2025. If met, this would reflect a notable 17% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 22% to R$1.44. Before this earnings report, the analysts had been forecasting revenues of R$5.68b and earnings per share (EPS) of R$1.43 in 2025. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at R$16.79. 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. Currently, the most bullish analyst values Caixa Seguridade Participações at R$19.00 per share, while the most bearish prices it at R$14.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Caixa Seguridade Participações is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Caixa Seguridade Participações' revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2025 being well below the historical 30% 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. Even after the forecast slowdown in growth, it seems obvious that Caixa Seguridade Participações is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still 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 in mind, we wouldn't be too quick to come to a conclusion on Caixa Seguridade Participações. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Caixa Seguridade Participações analysts - going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Caixa Seguridade Participações (1 is a bit concerning!) that you need to be mindful 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.