Multilaser Industrial S.A. Just Missed Earnings - But Analysts Have Updated Their Models

The analysts might have been a bit too bullish on Multilaser Industrial S.A. (BVMF:MLAS3), given that the company fell short of expectations when it released its full-year results last week. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at R$4.4b, statutory earnings missed forecasts by an incredible 74%, coming in at just R$0.11 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Multilaser Industrial

Taking into account the latest results, the current consensus, from the three analysts covering Multilaser Industrial, is for revenues of R$4.20b in 2023, which would reflect a measurable 4.1% reduction in Multilaser Industrial's sales over the past 12 months. Before this earnings report, the analysts had been forecasting revenues of R$5.31b and earnings per share (EPS) of R$0.85 in 2023. Overall, while there's been a large cut to revenue estimates, the consensus now no longer provides an EPS estimate, suggesting that after the latest results, the market believes revenue is more important.

There's been no real change to the consensus price target of R$6.73, with Multilaser Industrial seemingly executing in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Multilaser Industrial analyst has a price target of R$9.00 per share, while the most pessimistic values it at R$3.20. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 4.1% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 21% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.3% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Multilaser Industrial is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their revenue estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse than the wider industry. The consensus price target held steady at R$6.73, with the latest estimates not enough to have an impact on their price targets.

We have estimates for Multilaser Industrial from its three analysts out to 2025, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 4 warning signs for Multilaser Industrial (2 don't sit too well with us!) that you should be aware of.

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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.