Results: Viña Concha y Toro S.A. Exceeded Expectations And The Consensus Has Updated Its Estimates

Viña Concha y Toro S.A. (SNSE:CONCHATORO) just released its full-year report and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 2.2% to hit CL$769b. Statutory earnings per share (EPS) came in at CL$104, some 5.6% above whatthe analysts had expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Viña Concha y Toro

Following last week's earnings report, Viña Concha y Toro's three analysts are forecasting 2021 revenues to be CL$757.9b, approximately in line with the last 12 months. Statutory earnings per share are expected to reduce 4.2% to CL$100 in the same period. In the lead-up to this report, the analysts had been modelling revenues of CL$764.7b and earnings per share (EPS) of CL$107 in 2021. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

The consensus price target held steady at CL$1,626, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Viña Concha y Toro analyst has a price target of CL$2,000 per share, while the most pessimistic values it at CL$1,350. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 1.5% annualised revenue decline to the end of 2021. That is a notable change from historical growth of 2.1% 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 5.2% annually for the foreseeable future. It's pretty clear that Viña Concha y Toro's 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 downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Viña Concha y Toro going out to 2024, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Viña Concha y Toro that we have uncovered.

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