Analysts Have Lowered Expectations For Wilson Sons S.A. (BVMF:PORT3) After Its Latest Results

Last week, you might have seen that Wilson Sons S.A. (BVMF:PORT3) released its first-quarter result to the market. The early response was not positive, with shares down 2.5% to R$16.67 in the past week. Wilson Sons reported in line with analyst predictions, delivering revenues of R$635m and statutory earnings per share of R$0.88, suggesting the business is executing well and in line with its plan. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Wilson Sons

After the latest results, the consensus from Wilson Sons' three analysts is for revenues of R$2.40b in 2024, which would reflect a small 4.1% decline in revenue compared to the last year of performance. Yet prior to the latest earnings, the analysts had been anticipated revenues of R$2.69b and earnings per share (EPS) of R$0.82 in 2024. So we can see that while the consensus made a real cut to revenue estimates, it no longer provides an earnings per share estimate. This suggests that the market is now more focused on revenues after the latest results.

We'd also point out that thatthe analysts have made no major changes to their price target of R$17.67. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Wilson Sons, with the most bullish analyst valuing it at R$20.87 and the most bearish at R$13.08 per share. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 5.4% annualised decline to the end of 2024. That is a notable change from historical growth of 7.9% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 7.0% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Wilson Sons is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their revenue estimates for next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates it is expected to perform worse than the wider industry. The consensus price target held steady at R$17.67, with the latest estimates not enough to have an impact on their price targets.

We have estimates for Wilson Sons from its three analysts out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for Wilson Sons (1 shouldn't be ignored!) that you need to take into consideration.

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.