Telefônica Brasil S.A. Just Missed EPS By 7.6%: Here's What Analysts Think Will Happen Next

Investors in Telefônica Brasil S.A. (BVMF:VIVT3) had a good week, as its shares rose 3.9% to close at R$50.60 following the release of its quarterly results. Revenues of R$14b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at R$0.74, missing estimates by 7.6%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Telefônica Brasil

Following the latest results, Telefônica Brasil's eleven analysts are now forecasting revenues of R$55.6b in 2024. This would be a satisfactory 3.3% improvement in revenue compared to the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of R$55.4b and earnings per share (EPS) of R$3.43 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$59.07, with Telefônica Brasil seemingly executing in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Telefônica Brasil, with the most bullish analyst valuing it at R$64.00 and the most bearish at R$45.00 per share. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Telefônica Brasil's past performance and to peers in the same industry. It's clear from the latest estimates that Telefônica Brasil's rate of growth is expected to accelerate meaningfully, with the forecast 6.7% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 4.5% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 7.8% per year. Telefônica Brasil is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at R$59.07, with the latest estimates not enough to have an impact on their price targets.

We have estimates for Telefônica Brasil from its eleven analysts out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Telefônica Brasil .

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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.

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