Cencosud Shopping S.A. (SNSE:CENCOMALLS) Just Released Its Second-Quarter Earnings: Here's What Analysts Think

Last week saw the newest quarterly earnings release from Cencosud Shopping S.A. (SNSE:CENCOMALLS), an important milestone in the company's journey to build a stronger business. It was an okay result overall, with revenues coming in at CL$91b, roughly what the analysts had been expecting. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, Cencosud Shopping's five analysts are now forecasting revenues of CL$381.5b in 2025. This would be a satisfactory 3.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to decrease 7.9% to CL$142 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of CL$380.9b and earnings per share (EPS) of CL$144 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for Cencosud Shopping

The analysts reconfirmed their price target of CL$2,041, showing that the business is executing well and in line with expectations. 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. Currently, the most bullish analyst values Cencosud Shopping at CL$2,100 per share, while the most bearish prices it at CL$1,970. 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. We would highlight that Cencosud Shopping's revenue growth is expected to slow, with the forecast 7.7% annualised growth rate until the end of 2025 being well below the historical 18% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.6% per year. So it's pretty clear that, while Cencosud Shopping's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at CL$2,041, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Cencosud Shopping. Long-term earnings power is much more important than next year's profits. 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..

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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.