Grupo Financiero Banorte, S.A.B. de C.V. (BMV:GFNORTEO) Third-Quarter Results: Here's What Analysts Are Forecasting For Next Year

The third-quarter results for Grupo Financiero Banorte, S.A.B. de C.V. (BMV:GFNORTEO) were released last week, making it a good time to revisit its performance. Grupo Financiero Banorte. de reported in line with analyst predictions, delivering revenues of Mex$30b and statutory earnings per share of Mex$4.00, suggesting the business is executing well and in line with its plan. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Grupo Financiero Banorte. de

Following the latest results, Grupo Financiero Banorte. de's 14 analysts are now forecasting revenues of Mex$145.6b in 2023. This would be a substantial 38% improvement in sales compared to the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of Mex$134.3b and earnings per share (EPS) of Mex$18.12 in 2023. What's really interesting is that while the consensus made a modest lift to revenue estimates, it no longer provides an earnings per share estimate, suggesting that revenues are now the focus of the business after this latest result.

We'd also point out that thatthe analysts have made no major changes to their price target of Mex$175. 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. The most optimistic Grupo Financiero Banorte. de analyst has a price target of Mex$197 per share, while the most pessimistic values it at Mex$149. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. It's clear from the latest estimates that Grupo Financiero Banorte. de's rate of growth is expected to accelerate meaningfully, with the forecast 29% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 6.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Grupo Financiero Banorte. de is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that the analysts increased their revenue forecasts for Grupo Financiero Banorte. de next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues 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.

At least one of Grupo Financiero Banorte. de's 14 analysts has provided estimates out to 2025, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Grupo Financiero Banorte. de you should be aware of.

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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.