Earnings Update: Mitre Realty Empreendimentos e Participações S.A. (BVMF:MTRE3) Just Reported And Analysts Are Trimming Their Forecasts

Shareholders might have noticed that Mitre Realty Empreendimentos e Participações S.A. (BVMF:MTRE3) filed its yearly result this time last week. The early response was not positive, with shares down 5.1% to R$5.95 in the past week. It was an okay report, and revenues came in at R$574m, approximately in line with analyst estimates leading up to the results announcement. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Mitre Realty Empreendimentos e Participações

After the latest results, the three analysts covering Mitre Realty Empreendimentos e Participações are now predicting revenues of R$910.6m in 2022. If met, this would reflect a substantial 59% improvement in sales compared to the last 12 months. Per-share earnings are expected to jump 344% to R$1.02. Before this earnings report, the analysts had been forecasting revenues of R$1.10b and earnings per share (EPS) of R$1.54 in 2022. It looks like sentiment has declined substantially in the aftermath of these results, with a substantial drop in revenue estimates and a pretty serious reduction to earnings per share numbers as well.

It'll come as no surprise then, to learn that the analysts have cut their price target 11% to R$14.70. 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 Mitre Realty Empreendimentos e Participações at R$20.00 per share, while the most bearish prices it at R$9.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Mitre Realty Empreendimentos e Participações' growth to accelerate, with the forecast 59% annualised growth to the end of 2022 ranking favourably alongside historical growth of 35% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Mitre Realty Empreendimentos e Participações to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Mitre Realty Empreendimentos e Participações. They also downgraded their revenue estimates, although industry data suggests that Mitre Realty Empreendimentos e Participações' revenues are expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Mitre Realty Empreendimentos e Participações' future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Mitre Realty Empreendimentos e Participações going out to 2023, and you can see them free on our platform here..

It is also worth noting that we have found 4 warning signs for Mitre Realty Empreendimentos e Participações (1 is a bit unpleasant!) that you need to take into consideration.

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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.