Earnings Beat: Telefônica Brasil S.A. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Shareholders might have noticed that Telefônica Brasil S.A. (BVMF:VIVT3) filed its third-quarter result this time last week. The early response was not positive, with shares down 6.9% to R$32.04 in the past week. It looks like a credible result overall - although revenues of R$15b were in line with what the analysts predicted, Telefônica Brasil surprised by delivering a statutory profit of R$0.59 per share, a notable 20% above expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the most recent consensus for Telefônica Brasil from 17 analysts is for revenues of R$62.5b in 2026. If met, it would imply a credible 6.8% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 35% to R$2.55. In the lead-up to this report, the analysts had been modelling revenues of R$62.5b and earnings per share (EPS) of R$2.56 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

View our latest analysis for Telefônica Brasil

There were no changes to revenue or earnings estimates or the price target of R$35.95, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Telefônica Brasil at R$42.00 per share, while the most bearish prices it at R$28.50. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Telefônica Brasil's revenue growth is expected to slow, with the forecast 5.4% annualised growth rate until the end of 2026 being well below the historical 6.9% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.6% annually. Factoring in the forecast slowdown in growth, it seems obvious that Telefônica Brasil is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Telefônica Brasil's revenue is expected to perform worse than the wider industry. The consensus price target held steady at R$35.95, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Telefônica Brasil. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Telefônica Brasil analysts - going out to 2027, and you can see them free on our platform here.

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