Wal-Mart de México, S.A.B. de C.V. (BMV:WALMEX) Yearly Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Shareholders might have noticed that Wal-Mart de México, S.A.B. de C.V. (BMV:WALMEX) filed its full-year result this time last week. The early response was not positive, with shares down 5.2% to Mex$68.01 in the past week. It was a credible result overall, with revenues of Mex$887b and statutory earnings per share of Mex$2.96 both in line with analyst estimates, showing that Wal-Mart de México. de is executing in line with expectations. 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 Wal-Mart de México. de after the latest results.

See our latest analysis for Wal-Mart de México. de

Following the latest results, Wal-Mart de México. de's eleven analysts are now forecasting revenues of Mex$962.9b in 2024. This would be a meaningful 8.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 11% to Mex$3.29. In the lead-up to this report, the analysts had been modelling revenues of Mex$969.9b and earnings per share (EPS) of Mex$3.36 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$78.75, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Wal-Mart de México. de at Mex$87.00 per share, while the most bearish prices it at Mex$58.00. 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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 8.6% growth on an annualised basis. That is in line with its 7.4% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.6% annually. It's clear that while Wal-Mart de México. de's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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$78.75, with the latest estimates not enough to have an impact on their price targets.

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 Wal-Mart de México. de analysts - going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Wal-Mart de México. de you should know about.

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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.