Analyst Estimates: Here's What Brokers Think Of Prosegur Compañía de Seguridad, S.A. (BME:PSG) After Its Full-Year Report

Prosegur Compañía de Seguridad, S.A. (BME:PSG) last week reported its latest full-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was an okay result overall, with revenues coming in at €4.3b, roughly what the analysts had been expecting. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Prosegur Compañía de Seguridad

Following the latest results, Prosegur Compañía de Seguridad's seven analysts are now forecasting revenues of €4.51b in 2024. This would be a satisfactory 4.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 39% to €0.17. Yet prior to the latest earnings, the analysts had been anticipated revenues of €4.55b and earnings per share (EPS) of €0.19 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

The consensus price target held steady at €2.37, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Prosegur Compañía de Seguridad analyst has a price target of €3.27 per share, while the most pessimistic values it at €1.70. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Prosegur Compañía de Seguridad's rate of growth is expected to accelerate meaningfully, with the forecast 4.6% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 1.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 5.7% annually. So it's clear that despite the acceleration in growth, Prosegur Compañía de Seguridad is expected to grow meaningfully slower than the industry average.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Prosegur Compañía de Seguridad. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Prosegur Compañía de Seguridad analysts - going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Prosegur Compañía de Seguridad (at least 1 which shouldn't be ignored) , and understanding them should be part of your investment process.

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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.