Companhia de Saneamento de Minas Gerais Just Recorded A 11% Revenue Beat: Here's What Analysts Think

Companhia de Saneamento de Minas Gerais (BVMF:CSMG3) 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. It was a mildly positive result, with revenues exceeding expectations at R$2.0b, while statutory earnings per share (EPS) of R$0.97 were in line with analyst forecasts. 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.

Check out our latest analysis for Companhia de Saneamento de Minas Gerais

After the latest results, the consensus from Companhia de Saneamento de Minas Gerais' seven analysts is for revenues of R$7.71b in 2025, which would reflect a small 2.0% decline in revenue compared to the last year of performance. Yet prior to the latest earnings, the analysts had been anticipated revenues of R$7.71b and earnings per share (EPS) of R$3.33 in 2025. 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.

We'd also point out that thatthe analysts have made no major changes to their price target of R$24.01. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Companhia de Saneamento de Minas Gerais analyst has a price target of R$27.80 per share, while the most pessimistic values it at R$20.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Companhia de Saneamento de Minas Gerais shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.6% by the end of 2025. This indicates a significant reduction from annual growth of 9.2% 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 6.6% annually for the foreseeable future. It's pretty clear that Companhia de Saneamento de Minas Gerais' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Companhia de Saneamento de Minas Gerais' revenue is expected to perform worse than the wider industry. The consensus price target held steady at R$24.01, with the latest estimates not enough to have an impact on their price targets.

At least one of Companhia de Saneamento de Minas Gerais' seven analysts has provided estimates out to 2026, which can be seen for free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Companhia de Saneamento de Minas Gerais (at least 1 which shouldn't be ignored) , and understanding them should be part of your investment process.

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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.