TIM S.A. Just Beat EPS By 33%: Here's What Analysts Think Will Happen Next

Last week saw the newest third-quarter earnings release from TIM S.A. (BVMF:TIMS3), an important milestone in the company's journey to build a stronger business. It looks like a credible result overall - although revenues of R$6.7b were what the analysts expected, TIM surprised by delivering a (statutory) profit of R$0.50 per share, an impressive 33% above what was forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

After the latest results, the 17 analysts covering TIM are now predicting revenues of R$27.9b in 2026. If met, this would reflect an okay 5.9% improvement in revenue compared to the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of R$27.9b and earnings per share (EPS) of R$1.88 in 2026. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

Check out our latest analysis for TIM

There's been no real change to the consensus price target of R$25.22, with TIM 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. There are some variant perceptions on TIM, with the most bullish analyst valuing it at R$29.00 and the most bearish at R$21.00 per share. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that TIM's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 4.7% growth on an annualised basis. This is compared to a historical growth rate of 9.8% 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 revenue shrink 2.4% per year. Factoring in the forecast slowdown in growth, it's pretty clear that TIM is still expected to grow faster than the wider industry.

The Bottom Line

The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. On the plus side, they made no changes to their revenue estimates - and they expect it to perform better 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.

We have estimates for TIM from its 17 analysts out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.