C&A Modas S.A. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

It's been a pretty great week for C&A Modas S.A. (BVMF:CEAB3) shareholders, with its shares surging 11% to R$14.71 in the week since its latest first-quarter results. C&A Modas beat expectations by 3.5% with revenues of R$1.6b. It also surprised on the earnings front, with an unexpected statutory profit of R$0.013 per share a nice improvement on the losses that the analysts forecast. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on C&A Modas after the latest results.

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After the latest results, the eight analysts covering C&A Modas are now predicting revenues of R$8.30b in 2025. If met, this would reflect an okay 6.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to decrease 8.4% to R$1.16 in the same period. In the lead-up to this report, the analysts had been modelling revenues of R$8.26b and earnings per share (EPS) of R$1.17 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for C&A Modas

The analysts reconfirmed their price target of R$14.67, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values C&A Modas at R$17.00 per share, while the most bearish prices it at R$12.00. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that C&A Modas' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.7% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.4% per year. So it's pretty clear that, while C&A Modas' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for C&A Modas going out to 2027, 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 1 warning sign with C&A Modas , and understanding it 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.