Prosegur Cash, S.A. Just Missed EPS By 8.1%: Here's What Analysts Think Will Happen Next

It's been a good week for Prosegur Cash, S.A. (BME:CASH) shareholders, because the company has just released its latest full-year results, and the shares gained 2.9% to €0.64. It was a pretty mixed result, with revenues beating expectations to hit €2.1b. Statutory earnings fell 8.1% short of analyst forecasts, reaching €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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Prosegur Cash

After the latest results, the six analysts covering Prosegur Cash are now predicting revenues of €2.16b in 2025. If met, this would reflect a modest 3.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 32% to €0.08. Yet prior to the latest earnings, the analysts had been anticipated revenues of €2.11b and earnings per share (EPS) of €0.083 in 2025. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a modest to revenue, the consensus also made a small dip in its earnings per share forecasts.

There's been no major changes to the price target of €0.70, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Prosegur Cash analyst has a price target of €0.98 per share, while the most pessimistic values it at €0.53. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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 3.6% annualised growth rate until the end of 2025 being well below the historical 4.9% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.8% annually. Factoring in the forecast slowdown in growth, it seems obvious that Prosegur Cash is also expected to grow slower than other industry participants.

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. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. The consensus price target held steady at €0.70, with the latest estimates not enough to have an impact on their price targets.

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. We have forecasts for Prosegur Cash going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Prosegur Cash 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.