Suzano S.A. (BVMF:SUZB3) shareholders are probably feeling a little disappointed, since its shares fell 3.8% to R$46.70 in the week after its latest third-quarter results. Revenues of R$12b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at R$1.58, missing estimates by 9.4%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for Suzano from 14 analysts is for revenues of R$56.5b in 2026. If met, it would imply a decent 10% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 11% to R$5.91. Before this earnings report, the analysts had been forecasting revenues of R$57.0b and earnings per share (EPS) of R$6.35 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
See our latest analysis for Suzano
It might be a surprise to learn that the consensus price target was broadly unchanged at R$73.86, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Suzano at R$92.00 per share, while the most bearish prices it at R$61.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Suzano shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 8.2% growth on an annualised basis. That is in line with its 7.7% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 7.0% per year. It's clear that while Suzano's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Suzano. 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$73.86, with the latest estimates not enough to have an impact on their price targets.
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. We have forecasts for Suzano going out to 2027, and you can see them free on our platform here.
Plus, you should also learn about the 3 warning signs we've spotted with Suzano (including 2 which are significant) .
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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.