Analysts Have Made A Financial Statement On Wiz Soluções e Corretagem de Seguros S.A.'s (BVMF:WIZS3) Second-Quarter Report

Last week saw the newest quarterly earnings release from Wiz Soluções e Corretagem de Seguros S.A. (BVMF:WIZS3), an important milestone in the company's journey to build a stronger business. Revenues were R$245m, and Wiz Soluções e Corretagem de Seguros came in a solid 13% ahead of expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Wiz Soluções e Corretagem de Seguros

Taking into account the latest results, the current consensus from Wiz Soluções e Corretagem de Seguros' dual analysts is for revenues of R$865.0m in 2022, which would reflect a modest 4.0% increase on its sales over the past 12 months. Statutory earnings per share are predicted to ascend 15% to R$0.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of R$853.0m and earnings per share (EPS) of R$0.83 in 2022. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at R$14.40, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Wiz Soluções e Corretagem de Seguros' revenue growth is expected to slow, with the forecast 8.1% annualised growth rate until the end of 2022 being well below the historical 12% p.a. growth over the last five years. Compare this to the 8 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 9.0% per year. Factoring in the forecast slowdown in growth, it looks like Wiz Soluções e Corretagem de Seguros is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Wiz Soluções e Corretagem de Seguros following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Wiz Soluções e Corretagem de Seguros 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.