Analysts Are Updating Their Grupo Rotoplas S.A.B. de C.V. (BMV:AGUA) Estimates After Its First-Quarter Results

Last week saw the newest quarterly earnings release from Grupo Rotoplas S.A.B. de C.V. (BMV:AGUA), an important milestone in the company's journey to build a stronger business. It was an okay result overall, with revenues coming in at Mex$2.7b, 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Grupo Rotoplas. de after the latest results.

View our latest analysis for Grupo Rotoplas. de

Taking into account the latest results, the consensus forecast from Grupo Rotoplas. de's three analysts is for revenues of Mex$13.8b in 2024. This reflects a notable 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 20% to Mex$1.37. In the lead-up to this report, the analysts had been modelling revenues of Mex$13.1b and earnings per share (EPS) of Mex$2.70 in 2024. So it's pretty clear the analysts have mixed opinions on Grupo Rotoplas. de after the latest results; even though they upped their revenue numbers, it came at the cost of a large cut to per-share earnings expectations.

The consensus price target was unchanged at Mex$43.50, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Grupo Rotoplas. de at Mex$50.00 per share, while the most bearish prices it at Mex$34.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Grupo Rotoplas. de's growth to accelerate, with the forecast 19% annualised growth to the end of 2024 ranking favourably alongside historical growth of 12% per annum 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 5.8% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Grupo Rotoplas. de to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment 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.

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 estimates - from multiple Grupo Rotoplas. de 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 3 warning signs with Grupo Rotoplas. de , 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.