Analysts Are Updating Their La Comer, S.A.B. de C.V. (BMV:LACOMERUBC) Estimates After Its Full-Year Results

Last week, you might have seen that La Comer, S.A.B. de C.V. (BMV:LACOMERUBC) released its annual result to the market. The early response was not positive, with shares down 5.0% to Mex$33.58 in the past week. It was an okay report, and revenues came in at Mex$43b, approximately in line with analyst estimates leading up to the results announcement. 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 La Comer. de

Following the latest results, La Comer. de's five analysts are now forecasting revenues of Mex$47.1b in 2025. This would be a solid 8.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 15% to Mex$2.50. Yet prior to the latest earnings, the analysts had been anticipated revenues of Mex$48.3b and earnings per share (EPS) of Mex$2.55 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

The analysts made no major changes to their price target of Mex$45.71, suggesting the downgrades are not expected to have a long-term impact on La Comer. de'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 La Comer. de at Mex$55.00 per share, while the most bearish prices it at Mex$38.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. We would highlight that La Comer. de's revenue growth is expected to slow, with the forecast 8.9% annualised growth rate until the end of 2025 being well below the historical 13% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.3% annually. Factoring in the forecast slowdown in growth, it looks like La Comer. de is forecast to grow at about the same rate as 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. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target held steady at Mex$45.71, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on La Comer. de. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple La Comer. de analysts - going out to 2027, and you can see them free on our platform here.

We also provide an overview of the La Comer. de Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.