Inversiones Aguas Metropolitanas S.A. Just Missed Earnings - But Analysts Have Updated Their Models

Last week saw the newest annual earnings release from Inversiones Aguas Metropolitanas S.A. (SNSE:IAM), an important milestone in the company's journey to build a stronger business. Statutory earnings per share fell badly short of expectations, coming in at CL$60.54, some 29% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at CL$663b. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

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Following the latest results, Inversiones Aguas Metropolitanas' single analyst are now forecasting revenues of CL$706.8b in 2025. This would be a credible 6.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 39% to CL$84.34. Before this earnings report, the analyst had been forecasting revenues of CL$695.7b and earnings per share (EPS) of CL$77.59 in 2025. So the consensus seems to have become somewhat more optimistic on Inversiones Aguas Metropolitanas' earnings potential following these results.

View our latest analysis for Inversiones Aguas Metropolitanas

The average the analyst price target fell 15% to CL$772, suggesting thatthe analyst has other concerns, and the improved earnings per share outlook was not enough to allay them.

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. The period to the end of 2025 brings more of the same, according to the analyst, with revenue forecast to display 6.7% growth on an annualised basis. That is in line with its 8.3% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 0.4% annually. So it's pretty clear that Inversiones Aguas Metropolitanas is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Inversiones Aguas Metropolitanas following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Inversiones Aguas Metropolitanas' future valuation.

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 least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

You still need to take note of risks, for example - Inversiones Aguas Metropolitanas has 1 warning sign we think 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.