Stock Analysis

Grupo Financiero Inbursa, S.A.B. de C.V. Just Recorded A 35% EPS Beat: Here's What Analysts Are Forecasting Next

BMV:GFINBUR O
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Grupo Financiero Inbursa, S.A.B. de C.V. (BMV:GFINBURO) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 11% higher than the analysts had forecast, at Mex$17b, while EPS were Mex$2.00 beating analyst models by 35%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Grupo Financiero Inbursa. de

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BMV:GFINBUR O Earnings and Revenue Growth October 24th 2024

Taking into account the latest results, the consensus forecast from Grupo Financiero Inbursa. de's five analysts is for revenues of Mex$67.1b in 2025. This reflects a notable 17% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 3.2% to Mex$6.02. In the lead-up to this report, the analysts had been modelling revenues of Mex$66.4b and earnings per share (EPS) of Mex$5.92 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of Mex$46.13, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Grupo Financiero Inbursa. de at Mex$62.00 per share, while the most bearish prices it at Mex$34.00. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 13% growth on an annualised basis. That is in line with its 16% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 14% per year. So although Grupo Financiero Inbursa. de is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at Mex$46.13, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Grupo Financiero Inbursa. de going out to 2026, and you can see them free on our platform here.

You can also see whether Grupo Financiero Inbursa. de is carrying too much debt, and whether its balance sheet is healthy, for free on our 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.