Here's What Analysts Are Forecasting For Intelbras S.A. - Indústria de Telecomunicação Eletrônica Brasileira (BVMF:INTB3) Following Its Earnings Miss

Intelbras S.A. - Indústria de Telecomunicação Eletrônica Brasileira (BVMF:INTB3) just released its latest second-quarter report and things are not looking great. Intelbras - Indústria de Telecomunicação Eletrônica Brasileira missed analyst forecasts, with revenues of R$971m and statutory earnings per share (EPS) of R$0.36, falling short by 7.8% and 9.3% respectively. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Intelbras - Indústria de Telecomunicação Eletrônica Brasileira

Taking into account the latest results, the consensus forecast from Intelbras - Indústria de Telecomunicação Eletrônica Brasileira's seven analysts is for revenues of R$4.57b in 2023. This reflects a reasonable 4.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 9.5% to R$1.78. Before this earnings report, the analysts had been forecasting revenues of R$4.71b and earnings per share (EPS) of R$1.83 in 2023. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

Despite the cuts to forecast earnings, there was no real change to the R$33.21 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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. Currently, the most bullish analyst values Intelbras - Indústria de Telecomunicação Eletrônica Brasileira at R$38.00 per share, while the most bearish prices it at R$28.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Intelbras - Indústria de Telecomunicação Eletrônica Brasileira's past performance and to peers in the same industry. We would highlight that Intelbras - Indústria de Telecomunicação Eletrônica Brasileira's revenue growth is expected to slow, with the forecast 9.8% annualised growth rate until the end of 2023 being well below the historical 31% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.5% annually. So it's pretty clear that, while Intelbras - Indústria de Telecomunicação Eletrônica Brasileira's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Intelbras - Indústria de Telecomunicação Eletrônica Brasileira. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target held steady at R$33.21, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Intelbras - Indústria de Telecomunicação Eletrônica Brasileira going out to 2025, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Intelbras - Indústria de Telecomunicação Eletrônica Brasileira 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.