Wal-Mart de México, S.A.B. de C.V. (BMV:WALMEX) Just Released Its First-Quarter Earnings: Here's What Analysts Think

Investors in Wal-Mart de México, S.A.B. de C.V. (BMV:WALMEX) had a good week, as its shares rose 5.0% to close at Mex$67.56 following the release of its first-quarter results. Results were roughly in line with estimates, with revenues of Mex$226b and statutory earnings per share of Mex$0.76. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Wal-Mart de México. de

Taking into account the latest results, the most recent consensus for Wal-Mart de México. de from twelve analysts is for revenues of Mex$966.0b in 2024. If met, it would imply an okay 6.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 5.3% to Mex$3.22. In the lead-up to this report, the analysts had been modelling revenues of Mex$963.7b and earnings per share (EPS) of Mex$3.29 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at Mex$77.24, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on 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 Wal-Mart de México. de at Mex$85.00 per share, while the most bearish prices it at Mex$58.00. 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 Wal-Mart de México. de shareholders.

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 period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 8.9% growth on an annualised basis. That is in line with its 7.6% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.2% annually. So although Wal-Mart de México. 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 the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at Mex$77.24, 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 Wal-Mart de México. de. Long-term earnings power is much more important than next year's profits. We have forecasts for Wal-Mart de México. de going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Wal-Mart de México. de that we have uncovered.

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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.