Grupo Financiero Inbursa, S.A.B. de C.V. Just Missed EPS By 29%: Here's What Analysts Think Will Happen Next

It's been a good week for Grupo Financiero Inbursa, S.A.B. de C.V. (BMV:GFINBURO) shareholders, because the company has just released its latest quarterly results, and the shares gained 6.0% to Mex$45.66. Results overall were not great, with earnings of Mex$1.00 per share falling drastically short of analyst expectations. Meanwhile revenues hit Mex$15b and were slightly better than forecasts. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Grupo Financiero Inbursa. de

Taking into account the latest results, the most recent consensus for Grupo Financiero Inbursa. de from five analysts is for revenues of Mex$86.8b in 2024. If met, it would imply a major 58% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 4.2% to Mex$5.66. Before this earnings report, the analysts had been forecasting revenues of Mex$60.4b and earnings per share (EPS) of Mex$5.40 in 2024. The analysts seem more optimistic after the latest results, with a very substantial lift in revenue and a modest lift to earnings per share estimates.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of Mex$46.75, suggesting that the forecast performance does not have a long term impact on the company's 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. Currently, the most bullish analyst values Grupo Financiero Inbursa. de at Mex$63.00 per share, while the most bearish prices it at Mex$37.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Grupo Financiero Inbursa. de shareholders.

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. It's clear from the latest estimates that Grupo Financiero Inbursa. de's rate of growth is expected to accelerate meaningfully, with the forecast 151% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 15% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Grupo Financiero Inbursa. de is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Grupo Financiero Inbursa. de following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Grupo Financiero Inbursa. de going out to 2026, and you can see them free on our platform here..

It might also be worth considering whether Grupo Financiero Inbursa. de's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com