Analysts Are Updating Their Multiplan Empreendimentos Imobiliários S.A. (BVMF:MULT3) Estimates After Its Full-Year Results

Last week, you might have seen that Multiplan Empreendimentos Imobiliários S.A. (BVMF:MULT3) released its yearly result to the market. The early response was not positive, with shares down 3.0% to R$26.43 in the past week. Multiplan Empreendimentos Imobiliários reported R$2.0b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of R$1.73 beat expectations, being 4.4% higher than what the analysts expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Multiplan Empreendimentos Imobiliários

Following the latest results, Multiplan Empreendimentos Imobiliários' eight analysts are now forecasting revenues of R$2.23b in 2024. This would be a meaningful 9.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 9.4% to R$1.92. In the lead-up to this report, the analysts had been modelling revenues of R$2.17b and earnings per share (EPS) of R$1.78 in 2024. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Despite these upgrades,the analysts have not made any major changes to their price target of R$33.33, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. The most optimistic Multiplan Empreendimentos Imobiliários analyst has a price target of R$38.00 per share, while the most pessimistic values it at R$28.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 9.7% growth on an annualised basis. That is in line with its 11% 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 11% per year. So although Multiplan Empreendimentos Imobiliários is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Multiplan Empreendimentos Imobiliários' earnings potential next year. They also upgraded their revenue forecasts, although the latest estimates suggest that Multiplan Empreendimentos Imobiliários will grow in line with the overall 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Multiplan Empreendimentos Imobiliários going out to 2025, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Multiplan Empreendimentos Imobiliários , and understanding these should be part of your investment process.

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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.