Here's What Analysts Are Forecasting For TOTVS S.A. (BVMF:TOTS3) After Its Yearly Results

Investors in TOTVS S.A. (BVMF:TOTS3) had a good week, as its shares rose 2.6% to close at R$34.40 following the release of its annual results. It was a credible result overall, with revenues of R$5.2b and statutory earnings per share of R$1.19 both in line with analyst estimates, showing that TOTVS is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on TOTVS after the latest results.

See our latest analysis for TOTVS

Taking into account the latest results, the most recent consensus for TOTVS from ten analysts is for revenues of R$6.10b in 2025. If met, it would imply a solid 17% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 39% to R$1.67. Yet prior to the latest earnings, the analysts had been anticipated revenues of R$6.04b and earnings per share (EPS) of R$1.43 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the solid gain to earnings per share expectations following these results.

The consensus price target was unchanged at R$35.64, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values TOTVS at R$40.00 per share, while the most bearish prices it at R$30.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting TOTVS is an easy business to forecast or the the analysts are all using similar assumptions.

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. We can infer from the latest estimates that forecasts expect a continuation of TOTVS'historical trends, as the 17% annualised revenue growth to the end of 2025 is roughly in line with the 18% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 12% per year. So it's pretty clear that TOTVS is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around TOTVS' earnings potential next year. 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for TOTVS going out to 2027, and you can see them free on our platform here.

We also provide an overview of the TOTVS Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.