Analyst Estimates: Here's What Brokers Think Of TIM S.A. (BVMF:TIMS3) After Its Third-Quarter Report

Last week, you might have seen that TIM S.A. (BVMF:TIMS3) released its quarterly result to the market. The early response was not positive, with shares down 3.0% to R$16.08 in the past week. The result was positive overall - although revenues of R$6.4b were in line with what the analysts predicted, TIM surprised by delivering a statutory profit of R$0.32 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for TIM

After the latest results, the 13 analysts covering TIM are now predicting revenues of R$26.8b in 2025. If met, this would reflect a modest 6.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 31% to R$1.73. In the lead-up to this report, the analysts had been modelling revenues of R$26.8b and earnings per share (EPS) of R$1.84 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at R$21.86, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic TIM analyst has a price target of R$26.90 per share, while the most pessimistic values it at R$18.10. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the TIM's past performance and to peers in the same industry. It's pretty clear that there is an expectation that TIM's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.4% growth on an annualised basis. This is compared to a historical growth rate of 9.1% 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) 4.8% annually. So it's pretty clear that, while TIM'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 TIM. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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. At Simply Wall St, we have a full range of analyst estimates for TIM going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for TIM you should know about.

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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.