Suzano S.A. Just Missed EPS By 44%: Here's What Analysts Think Will Happen Next

It's been a good week for Suzano S.A. (BVMF:SUZB3) shareholders, because the company has just released its latest third-quarter results, and the shares gained 4.9% to R$59.00. Results overall were not great, with earnings of R$2.57 per share falling drastically short of analyst expectations. Meanwhile revenues hit R$12b and were slightly better than forecasts. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Suzano

After the latest results, the 13 analysts covering Suzano are now predicting revenues of R$48.6b in 2025. If met, this would reflect a meaningful 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 115% to R$7.24. Yet prior to the latest earnings, the analysts had been anticipated revenues of R$48.5b and earnings per share (EPS) of R$6.95 in 2025. So the consensus seems to have become somewhat more optimistic on Suzano's earnings potential following these results.

There's been no major changes to the consensus price target of R$71.79, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. There are some variant perceptions on Suzano, with the most bullish analyst valuing it at R$88.00 and the most bearish at R$54.60 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 Suzano's revenue growth is expected to slow, with the forecast 9.1% annualised growth rate until the end of 2025 being well below the historical 11% 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) 6.3% per year. So it's pretty clear that, while Suzano's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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 Suzano following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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 Suzano. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Suzano going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 3 warning signs for Suzano that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.