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

It's been a good week for Arca Continental, S.A.B. de C.V. (BMV:AC) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.9% to Mex$196. Revenues of Mex$63b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at Mex$3.22, missing estimates by 9.4%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for Arca Continental. de from 15 analysts is for revenues of Mex$255.7b in 2025. If met, it would imply a satisfactory 2.0% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 6.1% to Mex$12.53. In the lead-up to this report, the analysts had been modelling revenues of Mex$261.2b and earnings per share (EPS) of Mex$13.61 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

See our latest analysis for Arca Continental. de

Despite the cuts to forecast earnings, there was no real change to the Mex$234 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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. The most optimistic Arca Continental. de analyst has a price target of Mex$265 per share, while the most pessimistic values it at Mex$193. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Arca Continental. de's revenue growth is expected to slow, with the forecast 4.1% annualised growth rate until the end of 2025 being well below the historical 7.9% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.4% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Arca Continental. de.

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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Arca Continental. de going out to 2027, 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 Arca Continental. 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.