Cencosud Shopping S.A. Just Beat EPS By 10%: Here's What Analysts Think Will Happen Next

Cencosud Shopping S.A. (SNSE:CENCOMALLS) just released its latest full-year results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 2.6% to hit CL$353b. Cencosud Shopping reported statutory earnings per share (EPS) CL$156, which was a notable 10% above what the analysts had forecast. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Cencosud Shopping

After the latest results, the five analysts covering Cencosud Shopping are now predicting revenues of CL$367.5b in 2025. If met, this would reflect a satisfactory 4.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to decline 16% to CL$132 in the same period. Before this earnings report, the analysts had been forecasting revenues of CL$363.9b and earnings per share (EPS) of CL$136 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at CL$1,850, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. The most optimistic Cencosud Shopping analyst has a price target of CL$1,970 per share, while the most pessimistic values it at CL$1,707. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Cencosud Shopping's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.1% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.0% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Cencosud Shopping.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Cencosud Shopping. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Cencosud Shopping's revenue is expected to 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 Cencosud Shopping going out to 2027, and you can see them free on our platform here..

Even so, be aware that Cencosud Shopping is showing 2 warning signs in our investment analysis , and 1 of those is a bit unpleasant...

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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.