Stock Analysis

Arca Continental, S.A.B. de C.V. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

BMV:AC *
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Last week, you might have seen that Arca Continental, S.A.B. de C.V. (BMV:AC) released its third-quarter result to the market. The early response was not positive, with shares down 3.4% to Mex$174 in the past week. It looks like the results were a bit of a negative overall. While revenues of Mex$63b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 5.5% to hit Mex$3.02 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Arca Continental. de

earnings-and-revenue-growth
BMV:AC * Earnings and Revenue Growth October 27th 2024

Taking into account the latest results, the most recent consensus for Arca Continental. de from 15 analysts is for revenues of Mex$251.1b in 2025. If met, it would imply a solid 12% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to grow 17% to Mex$13.04. Yet prior to the latest earnings, the analysts had been anticipated revenues of Mex$250.7b and earnings per share (EPS) of Mex$12.99 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of Mex$208, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on Arca Continental. de, with the most bullish analyst valuing it at Mex$240 and the most bearish at Mex$145 per share. 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 Arca Continental. de shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Arca Continental. de's rate of growth is expected to accelerate meaningfully, with the forecast 9.5% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 7.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.2% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Arca Continental. de is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected 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.

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 Arca Continental. de going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Arca Continental. de .

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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.