Cencosud Shopping S.A. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Cencosud Shopping S.A. (SNSE:CENCOSHOPP) shareholders are probably feeling a little disappointed, since its shares fell 4.4% to CL$1,510 in the week after its latest annual results. Revenues of CL$315b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at CL$110, missing estimates by 8.8%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Cencosud Shopping after the latest results.

View our latest analysis for Cencosud Shopping

Taking into account the latest results, the consensus forecast from Cencosud Shopping's four analysts is for revenues of CL$344.4b in 2024. This reflects a meaningful 9.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 24% to CL$136. In the lead-up to this report, the analysts had been modelling revenues of CL$343.9b and earnings per share (EPS) of CL$135 in 2024. 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.

The analysts reconfirmed their price target of CL$1,721, showing that the business is executing well and in line with expectations. 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. Currently, the most bullish analyst values Cencosud Shopping at CL$1,800 per share, while the most bearish prices it at CL$1,460. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Cencosud Shopping's revenue growth is expected to slow, with the forecast 9.4% annualised growth rate until the end of 2024 being well below the historical 17% p.a. growth over the last five years. Compare this to the 11 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 9.2% per year. Factoring in the forecast slowdown in growth, it looks like Cencosud Shopping is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at CL$1,721, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Cencosud Shopping going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Cencosud Shopping that you should be aware of.

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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.