Brisanet Participações S.A. Just Missed EPS By 14%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that Brisanet Participações S.A. (BVMF:BRIT3) filed its second-quarter result this time last week. The early response was not positive, with shares down 8.0% to R$3.66 in the past week. Statutory earnings per share of R$0.04 unfortunately missed expectations by 14%, although it was encouraging to see revenues of R$346m exceed expectations by 3.4%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Brisanet Participações

Taking into account the latest results, the most recent consensus for Brisanet Participações from six analysts is for revenues of R$1.47b in 2024. If met, it would imply a notable 12% increase on its revenue over the past 12 months. Before this earnings report, the analysts had been forecasting revenues of R$1.45b and earnings per share (EPS) of R$0.29 in 2024. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.

There's been no real change to the consensus price target of R$4.71, with Brisanet Participações seemingly executing in line with expectations. 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. The most optimistic Brisanet Participações analyst has a price target of R$6.00 per share, while the most pessimistic values it at R$4.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Brisanet Participações'historical trends, as the 25% annualised revenue growth to the end of 2024 is roughly in line with the 25% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 8.0% per year. So it's pretty clear that Brisanet Participações is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. 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.

At least one of Brisanet Participações' six analysts has provided estimates out to 2026, which can be seen for free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Brisanet Participações 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.