Prosegur Cash, S.A. (BME:CASH) Just Released Its Third-Quarter Earnings: Here's What Analysts Think

Prosegur Cash, S.A. (BME:CASH) shareholders are probably feeling a little disappointed, since its shares fell 9.0% to €0.71 in the week after its latest third-quarter results. Results look mixed - while revenue fell marginally short of analyst estimates at €483m, statutory earnings were in line with expectations, at €0.06 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the most recent consensus for Prosegur Cash from seven analysts is for revenues of €2.20b in 2026. If met, it would imply an okay 7.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 35% to €0.082. Yet prior to the latest earnings, the analysts had been anticipated revenues of €2.28b and earnings per share (EPS) of €0.092 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

See our latest analysis for Prosegur Cash

Despite the cuts to forecast earnings, there was no real change to the €0.90 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Prosegur Cash at €0.95 per share, while the most bearish prices it at €0.82. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business 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 Prosegur Cash's revenue growth is expected to slow, with the forecast 5.8% annualised growth rate until the end of 2026 being well below the historical 7.6% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.0% annually. So it's pretty clear that, while Prosegur Cash's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Prosegur Cash. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Prosegur Cash. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Prosegur Cash analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Prosegur Cash has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.

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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.