Telefônica Brasil S.A. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Telefônica Brasil S.A. (BVMF:VIVT3) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues were R$14b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of R$1.02 were also better than expected, beating analyst predictions by 12%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Telefônica Brasil after the latest results.

Check out our latest analysis for Telefônica Brasil

Taking into account the latest results, the current consensus from Telefônica Brasil's 13 analysts is for revenues of R$59.0b in 2025. This would reflect a satisfactory 7.6% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 23% to R$4.05. In the lead-up to this report, the analysts had been modelling revenues of R$58.9b and earnings per share (EPS) of R$4.04 in 2025. 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.

The analysts reconfirmed their price target of R$60.44, showing that the business is executing well and 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 Telefônica Brasil, with the most bullish analyst valuing it at R$66.00 and the most bearish at R$49.00 per share. This is a very narrow spread of estimates, implying either that Telefônica Brasil is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 clear from the latest estimates that Telefônica Brasil's rate of growth is expected to accelerate meaningfully, with the forecast 6.0% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 5.0% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 9.6% annually. So it's clear that despite the acceleration in growth, Telefônica Brasil is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at R$60.44, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Telefônica Brasil analysts - 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 Telefônica Brasil 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.