Gentera, S.A.B. de C.V. (BMV:GENTERA) Released Earnings Last Week And Analysts Lifted Their Price Target To Mex$13.55

Shareholders will be ecstatic, with their stake up 33% over the past week following Gentera, S.A.B. de C.V.'s (BMV:GENTERA) latest yearly results. Statutory results overall were mixed, with revenues coming in 30% lower than the analysts predicted. What's really surprising is that losses of Mex$1.00 per share were 27% smaller than what was predicted. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Gentera. de

After the latest results, the seven analysts covering Gentera. de are now predicting revenues of Mex$18.7b in 2021. If met, this would reflect a huge 60% improvement in sales compared to the last 12 months. Gentera. de is also expected to turn profitable, with statutory earnings of Mex$0.90 per share. In the lead-up to this report, the analysts had been modelling revenues of Mex$18.5b and earnings per share (EPS) of Mex$0.75 in 2021. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the solid gain to earnings per share expectations following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.6% to Mex$13.55. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Gentera. de at Mex$25.00 per share, while the most bearish prices it at Mex$6.00. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

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 analysts are definitely expecting Gentera. de's growth to accelerate, with the forecast 60% growth ranking favourably alongside historical growth of 1.2% 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 16% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Gentera. de to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Gentera. de's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Gentera. de going out to 2022, 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 Gentera. de that we have uncovered.

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